Within this paper, we are interested in simulating the market for political funding to answer how the U.S. Supreme Court case Citizens United v. FEC affected both PACs and political candidates.
In order to do so, we first introduce the transferable utility matching framework. Then, we describe a variety of features used to describe political candidates and contributors. These features are used to simulate production in matches (for more information on the matching framework, see Koopmans and Beckmann (1957), among others).
To simulate the market, we must estimate parameters. The approach here is the semiparametric maximum score estimator, following JT Fox (2007).
The paper is: econometrics_research.pdf
Many thanks to Jeremy Fox for an interesting and challenging class.