The Comparative Statics of Sorting

• 成果类型: Article
• 署名作者: Anderson, Axel; Smith, Lones
• 署名单位: Georgetown University; University of Wisconsin System; University of Wisconsin Madison
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.20210890
• 发表日期: 2024
• 页码: 709-751
• 关键词: INEQUALITIES

摘要

We create a general and tractable theory of increasing sorting in pairwise matching models with monetary transfers. The positive quadrant dependence partial order subsumes Becker (1973) as the extreme cases with most and least sorting and implies increasing regression coefficients. Our theory turns on synergy-the cross -partial difference or derivative of match production. This reflects basic economic forces: diminishing returns, technological convexity, insurance, and learning dynamics. We prove sorting increases if match synergy globally increases, and is cross-sectionally monotone or single crossing. We use our results to derive sorting predictions in major economics sorting papers and in new applications. (JEL C78, D21, D82, D86, J12)