Matching to Share Risk

نویسندگان

  • Pierre-Andre Chiappori
  • Philip J. Reny
چکیده

We consider a matching model in which individuals belonging to two populations (‘males’and ‘females’) can match to share their exogenous income risk. Within each population, individuals can be ranked by risk aversion in the Arrow-Pratt sense. The model permits non transferable utility, a context in which few general results have previously been derived. We show that in this framework a stable matching always exists and it is negatively assortative: for any two matched couples, the more risk averse male is matched with the less risk averse female. We discuss the implications of these results for the empirical analysis of risk-sharing.

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تاریخ انتشار 2005