Estimating separable matching models.

Summary: Most recent empirical applications of matching with transferable utility have imposed a natural restriction: that the joint surplus be separable in the sources of unobserved heterogeneity. We propose here two simple methods to estimate models in this class. The first method is a minimum distance estimator that relies on the generalized entropy of matching. The second applies to the more special but popular Choo and Siow model, which reformulates as a generalized linear model with two‐way fixed effects. Neither method requires solving for the stable matching. Both methods are easy to apply and perform very well. [ABSTRACT FROM AUTHOR]