Policy Analysis in Matching Markets

Author:

Agarwal Nikhil1

Affiliation:

1. Department of Economics, Massachusetts Institute of Technology, 77 Massachusetts Avenue, Cambridge, MA 02142 and NBER (e-mail: )

Abstract

Price and quantity interventions intended to affect assignments are common in many labor and education markets (e.g., financial aid, quotas). This article discusses an empirical framework, based on the theory of stable matching, that is suitable for policy analysis while accounting for the presence of equilibrium sorting. It then compares financial incentives and supply interventions for encouraging the training of family medicine residents in rural America. Due to equilibrium effects, the primary effect of financial incentives is to increase the quality, not numbers, of residents in rural programs, while quantity regulations directly affect numbers without adversely affecting quality.

Publisher

American Economic Association

Subject

Economics and Econometrics

Cited by 7 articles. 订阅此论文施引文献 订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献

1. Market design;Handbook of Industrial Organization, Volume 5;2021

2. Common ownership, market power, and innovation;International Journal of Industrial Organization;2020-05

3. Matching: A Python library for solving matching games;Journal of Open Source Software;2020-04-17

4. Medical Labour Supply and the Production of Healthcare;Fiscal Studies;2019-12

5. Disruption and the matching market for new multifamily housing in Melbourne, Australia;Journal of General Management;2019-04

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