Matching with Transfers
October 19–20, 2015
Monday, October 19
The course will describe the basic theoretical structure of matching models. In particular, the basic distinction between Non Transferable Utility, Transferable Utility and Imperfectly Transferable Utility will be emphasized. We shall then analyze more precisely models allowing for transfers. We shall successively consider the theoretical underpinning of TU models, the basic equivalence results between matching under TU, hedonic models and the 'Monge-Kantorovitch' optimal transportation literature, the one dimensional notion of assortative matching and its multidimensional generalizations, the case of ITU models, and several extensions, including pre-matching investment and applications to risk sharing.
Tuesday, October 20
In this course we shall discuss various applications of matching models. We will start with a discussion of the econometric techniques that can be applied to matching models, depending on the nature of available data (matching patterns only, matching patterns and surplus, matching patterns and surplus, matching patterns and transfers). We shall then review several applications of these models.