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Stable Partnerships, Matching, and Local Public Goods

Author
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.
Description
WP 2002-32 October 2002 JEL Classification Codes: C78; D13; D61; H41
Date Issued
2002-10Publisher
Charles H. Dyson School of Applied Economics and Management, Cornell University
Subject
Matching; sorting; local public goods; heterogeneity of tastes
Type
article