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The Cobb Douglas marriage matching function: Marriage matching with peer and scale effects

This paper proposes an elementary empirical framework to study behavioral marriage matching models, the Cobb Douglas marriage matching function (CD MMF). It accommodates different kinds of relationships, peer and scale effects, changes in population supplies and gains to relationships. The CD MMF encompasses the Choo and Siow (2006a, CS), Dagsvik (2000), Menzel (2015), Chiappori, Salanie and Weiss (1016) MMFs, and CS with peer and scale effects (CSPE). Given population supplies, the CD MMF equilibrium matching always exists and is unique. The CD MMF is estimated on marriage and cohabitation of the white population in US states from 1990 to 2010. Scale effects are present in US marriage markets. CSPE is not rejected by the data. The paper also extends the framework to consider Brock and Durlauf (2001) peer effects specification in marriage matching models.

Authors: 
Ismael Mourifié, University of Toronto
Aloysius Siow, University of Toronto
Publication Date: 
January, 2017
Publication Status: 
Document Number: 
2017-007
File Description: 
First version, 2017