Matching with Transfers
The Economics of Love and Marriage
Over the past few decades, matching models, which use mathematical frameworks to analyze allocation mechanisms for heterogeneous products and individuals, have attracted renewed attention in both theoretical and applied economics. These models have been used in many contexts, from labor markets to organ donations, but recent work has tended to focus on "nontransferable" cases rather than matching models with transfers. In this important book, Pierre-André Chiappori fills a gap in the literature by presenting a clear and elegant overview of matching with transfers and provides a set of tools that enable the analysis of matching patterns in equilibrium, as well as a series of extensions. He then applies these tools to the field of family economics and shows how analysis of matching patterns and of the incentives thus generated can contribute to our understanding of long-term economic trends, including inequality and the demand for higher education.
Pierre-André Chiappori is the E. Rowan and Barbara Steinschneider Professor of Economics at Columbia University and a Distinguished Fellow at the Becker Friedman Institute for Research in Economics at the University of Chicago. He is the author or coauthor of several books, including Economics of the Family.