Taxation in Matching Markets - Sciences Po Access content directly
Journal Articles International Economic Review Year : 2020

Taxation in Matching Markets

Abstract

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 nonmonotonic, but is weakly increasing in the tax rate under linear taxation if each worker has negative nonpecuniary 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.

Keywords

Fichier principal
Vignette du fichier
2020_dupuy_galichon_jaffe_kominers_taxation_in_matching_markets.pdf (806.83 Ko) Télécharger le fichier

Dates and versions

hal-03893206 , version 1 (10-12-2022)

Licence

Attribution

Identifiers

Cite

Arnaud Dupuy, Alfred Galichon, Sonia Jaffe, Scott Duke Kominers. Taxation in Matching Markets. International Economic Review, 2020, 61 (4), pp.1591-1634. ⟨10.1111/iere.12474⟩. ⟨hal-03893206⟩
10 View
27 Download

Altmetric

Share

Gmail Facebook X LinkedIn More