Article (Scientific journals)
Taxation in matching markets
DUPUY, Arnaud; Galichon, Alfred; Jaffe, Sonia et al.
2020In International Economic Review, 61 (4), p. 1591-1634
Peer reviewed
 

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Keywords :
Matching; Taxation
Abstract :
[en] We analyze the effects of taxation in two-sided matching markets where agents have heterogeneous preferences over potential partners. Our model provides a continuous link between models of matching with and without transfers. Taxes generate inefficiency on the allocative margin, by changing who matches with whom. This allocative inefficiency can be non-monotonic, but is weakly increasing in the tax rate under linear taxation if each worker has negative non-pecuniary utility of working. We adapt existing econometric methods for markets without taxes to our setting, and estimate preferences in the college-coach football market. We show through simulations that standard methods inaccurately measure deadweight loss.
Disciplines :
Microeconomics
Author, co-author :
DUPUY, Arnaud ;  University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Center for Research in Economic Analysis (CREA)
Galichon, Alfred
Jaffe, Sonia
Kominers, Scott
External co-authors :
yes
Language :
English
Title :
Taxation in matching markets
Publication date :
2020
Journal title :
International Economic Review
ISSN :
1468-2354
Publisher :
Blackwell, Oxford, United Kingdom
Volume :
61
Issue :
4
Pages :
1591-1634
Peer reviewed :
Peer reviewed
FnR Project :
FNR8337045 - Optimal Policies In The Market For Childcare: Theory And Evidence From Luxembourg, 2014 (01/05/2015-30/04/2018) - Arnaud Dupuy
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since 04 June 2020

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