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The unreasonable effectiveness of optimal transport in economics

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 نشر من قبل Alfred Galichon
 تاريخ النشر 2021
  مجال البحث اقتصاد مالية
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 تأليف Alfred Galichon




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Optimal transport has become part of the standard quantitative economics toolbox. It is the framework of choice to describe models of matching with transfers, but beyond that, it allows to: extend quantile regression; identify discrete choice models; provide new algorithms for computing the random coefficient logit model; and generalize the gravity model in trade. This paper offer a brief review of the basics of the theory, its applications to economics, and some extensions.



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