An Empirical Model of the Medical Match | Online Appendix
American Economic Review, forthcoming
(NBER Working Paper 20767 - includes analysis of government interventions for rural programs)
Here's the MIT News report:
January 27, 2015
We initially started this blog for our Market Design course. We'll post news stories (market design is everywhere) and other items (including stories related to repugnant markets). It is meant to supplement the course page, and Al's Game theory, experimental economics, and market design page.
We see no limit on the mischief that ruling in Perez’s favor might cause: A professional boxer could argue that some part of the payments he received for his latest fight is excludable because they are payments for his bruises, cuts, and nosebleeds. A hockey player could argue that a portion of his million-dollar salary is allocable to the chipped teeth he invariably suffers during his career. And the same would go for the brain injuries suffered by football players and the less-noticed bodily damage daily endured by working men and women on farms and ranches, in mines, or on fishing boats. We don’t doubt that some portion of the compensation paid all these people reflects the risk that they will feel pain and suffering, but it’s a risk of pain and suffering that they agree to before they begin their work. And that makes it taxable compensation and not excludable damages.