with more stable configurations when two families marry off several of their

With more stable configurations when two families

This preview shows page 19 - 22 out of 30 pages.

with more stable configurations when two families marry off several of their children, as they have more leeway to rearrange the aggregate surplus among them. This helps explain why the practice of watta-satta , a bride exchange involving the simultaneous marriage of a brother-sister pair from two households, is common in some developing u i 1 = 6 , u i 2 = 6 support the efficient assignment as family-stable, but not as individual-stable. 18
Image of page 19
countries (Jacoby and Mansuri 2010). Thus, we find that for a given efficient assignment, families would accept some sharings- out of surplus its members would never accept if they were acting alone. As a conse- quence, our model predicts that arranged marriage could leave the assignment itself unaffected while greatly changing the surplus-sharing accepted by the married children. This result may have drastic implications ex ante in terms of premarital investment, in particular for the education of daughters. Moreover, it implies that in some societies, we may observe assignments that are predicted by one-to-one matching models but for which the sharing of surplus within the household is unexplained by classical theory. Our extension helps explain these situations. Overall, we find that family partitioning determines the properties of family-stable matchings. For some family partitions, we may observe inefficient outcomes. As ex- plained above, this seems to be the case when the distribution of sons and daughters is not uniform across families or when there is heterogeneity in families’ size. For certain other family partitions, we may observe only efficient outcomes but drastic differences in terms of the size of the set of shares supporting them. For some family partitions, any sharing-out of aggregate surplus across families supports the efficient assignment as family-stable, as we illustrated with F 2 and more broadly for all partitions that divide the population into two families. For others, the set is smaller and even the same as that obtained under individual decision-making: this is straightforward for the family partition that partitions the population into single individuals, for instance. Less trivially, this is also the case when each family is composed of one son and one daughter. It seems that the more competition between families, the smaller the set of shares supporting the efficient outcomes, as shown in Figure 5. For a population of three men and three women, we observe how the family partition affects the set of shares of surplus that support the efficient assignment ( μ * ) i 1 - j 2 , i 2 - j 3 , i 3 - j 1 . We thus assume that π 12 + π 23 + π 31 maximizes the sum of total marital surplus over all possible assignments 23 . Shaded volumes represent the set of shares of surplus that 23 We also assume π 12 + π 31 π 11 + π 32 , otherwise μ * would not hold as family-stable in family 19
Image of page 20
support μ * as family-stable. When volumes are in several colors, the set of shares of surplus supporting μ * as family-stable is the intersection of these volumes.
Image of page 21
Image of page 22

You've reached the end of your free preview.

Want to read all 30 pages?

  • Spring '10
  • J2, family dimension

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes
A+ icon
Ask Expert Tutors