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Stable partnerships, matching, and local public goods

Research output: Contribution to journalArticle

Original languageEnglish
Pages (from-to)905-925
Number of pages21
JournalEuropean Economic Review
Volume48
Issue number4
DOIs
Publication statusPublished - Aug 2004

Abstract

In the presence of local public goods differences in tastes are an important determinant of the way in which partnerships are formed. Heterogeneity in tastes for private vs. public goods produces a tendency to positive assortment and partnerships of couples with similar tastes; heterogeneity in tastes for different public goods brings about partnerships of couples with similar tastes only if there is a significant overlap in the distribution of tastes of the two groups to be matched. We show that with two public goods we may get negative assortment, pure positive assortment being only one of many possibilities.

    Research areas

  • matching, sorting, local public goods, heterogeneity of tastes

ID: 5693982