Identification and Parametric Estimation of Empirical Dynamic Marriage Matching Models

Abstract

Marriage matching markets typically involve heterogenous agents participating in a dynamic, non-stationary environment. These features pose a considerable modeling challenge. In this paper, we develop a new parametric model of dynamic marriage that allows for market non-stationarity using a system of transitionary equilibria. We propose a method to identify and parametrically estimate the model by representing the model equilibrium with a fixed-point mapping. We apply our model to investigate how China’s One-Child Policy has affected the marriage distribution through its effect on the population and sex ratios.