Research Papers

We survey the modern economics literature on the role of neighborhoods in influencing socioeconomic outcomes, covering a range of theoretical, econometric, and empirical topics.

Studies argue that geographic neighborhood influences are crucial for understanding inner city poverty. Methodological advances in economic theory now incorporate spillover effects into microeconomic models, similar to those in growth contexts. Additionally, analyzing neighborhood effects in game theory has become a significant research area.

Neighborhood effects have been analyzed in a range of theoretical and applied contexts and have proven to be of interest in understanding questions ranging from the asymptotic properties of various evolutionary games to explaining the persistence of poverty in inner cities.

We developed general conditions under which complementarities between individual agents imply that assortative matching is efficient. Our analysis covered equal-sized groups, varying group sizes, sequences of replications, and the effects of feedback from group composition on efficient allocations.

We aimed to understand the efficiency of assortative matching in the presence of agent complementarities. By examining different scenarios and conditions, we sought to identify when and why assortative matching leads to efficient outcomes.

Our findings highlight the complexities in achieving efficient assortative matching in an economy. Understanding these complexities and the conditions for efficiency is crucial for designing policies and mechanisms that promote optimal allocation of resources and improve economic outcomes.