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Stable partnerships, matching, and local public goods

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  • Clark, Simon
  • Kanbur, Ravi

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.
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  • Clark, Simon & Kanbur, Ravi, 2004. "Stable partnerships, matching, and local public goods," European Economic Review, Elsevier, vol. 48(4), pages 905-925, August.
    • Handle: RePEc:eee:eecrev:v:48:y:2004:i:4:p:905-925
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    References listed on IDEAS

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    2. Junsen Zhang & Pak-Wai Liu, 2003. "Testing Becker’s Prediction on Assortative Mating on Spouses’Wages," Journal of Human Resources, University of Wisconsin Press, vol. 38(1).
    3. Lundberg, Shelly & Pollak, Robert A, 1993. "Separate Spheres Bargaining and the Marriage Market," Journal of Political Economy, University of Chicago Press, vol. 101(6), pages 988-1010, December.
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    Cited by:

    1. Simon Clark, 2020. ""You're Just My Type!" Matching and Payoffs When Like Attracts Like," Edinburgh School of Economics Discussion Paper Series 295, Edinburgh School of Economics, University of Edinburgh.
    2. Matthew J. Baker & Joyce P. Jacobsen, 2007. "Marriage, Specialization, and the Gender Division of Labor," Journal of Labor Economics, University of Chicago Press, vol. 25(4), pages 763-793.
    3. Schwager, Robert, 2008. "Grade Inflation, Social Background, and Labour Market Matching," ZEW Discussion Papers 08-070, ZEW - Leibniz Centre for European Economic Research.
    4. Schwager, Robert, 2012. "Grade inflation, social background, and labour market matching," Journal of Economic Behavior & Organization, Elsevier, vol. 82(1), pages 56-66.
    5. Simon Clark, 2002. "Uniqueness of Equilibrium in Two-sided Matching," Edinburgh School of Economics Discussion Paper Series 84, Edinburgh School of Economics, University of Edinburgh.
    6. Suman Ghosh & Alexander Karaivanov & Mandar Oak, 2007. "A Case for Bundling Public Goods Contributions," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 9(3), pages 425-449, June.
    7. Simon Clark, 2007. "Matching and Sorting when Like Attracts Like," Edinburgh School of Economics Discussion Paper Series 171, Edinburgh School of Economics, University of Edinburgh.

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    More about this item

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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