IZA DP No. 6942: Canonical Correlation and Assortative Matching: A Remark
published in: Annals of Economics and Statistics, 2015, 119/120, 375 - 383
In the context of the Beckerian theory of marriage, when men and women match on a single-dimensional index that is the weighted sum of their respective multivariate attributes, many papers in the literature have used linear canonical correlation, and related techniques, in order to estimate these weights. We argue that this estimation technique is inconsistent and suggest some solutions.