Identification of Matching Complementarities: A Geometric Viewpoint

TL;DR

This paper introduces a geometric approach to identifying matching surplus functions, utilizing a generalized entropy framework to facilitate the estimation process in matching models.

Contribution

It presents a novel geometric formulation and a generalized entropy method for estimating matching surplus functions, advancing the analytical tools in matching theory.

Findings

Provides a new geometric perspective on matching surplus identification.

Develops a generalized entropy-based estimation method.

Enhances the computational tractability of matching models.

Abstract

We provide a geometric formulation of the problem of identification of the matching surplus function and we show how the estimation problem can be solved by the introduction of a generalized entropy function over the set of matchings.