We analyze the effects of taxation in two-sided matching markets, i.e. markets in which all agents have heterogeneous preferences over potential partners. In matching markets, taxes can generate inefficiency on the allocative margin by changing who is matched to whom, even if the number of...

We propose an alternative notion of non-transferable utility (NTU) stability in matching models that relies on money burning. Our model captures an exchange economy with indivisible goods, fixed prices, and no centralized assignment mechanism. In these models, a non-transferable numeraire (e.g.,...

We analyze marital matching on income using an extremely rich Dutch data set containing all income tax files over four years. We develop a novel methodology that directly extends previous contributions to allow for highly flexible matching patterns. Investigating all marriages that took place...

We analyze the effects of taxation in two-sided matching markets where agents have heterogeneous preferences over potential partners. Our model provides a continuous link between models of matching with and without transfers. Taxes generate inefficiency on the allocative margin, by changing who...

We analyze the effects of taxation in two-sided matching markets where agents have heterogeneous preferences over potential partners. Our model provides a continuous link between models of matching with and without transfers. Taxes generate inefficiency on the allocative margin, by changing who...