The unreasonable effectiveness of optimal transport in economics
General Economics
2021-07-13 v1 Economics
Abstract
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.
Keywords
Cite
@article{arxiv.2107.04700,
title = {The unreasonable effectiveness of optimal transport in economics},
author = {Alfred Galichon},
journal= {arXiv preprint arXiv:2107.04700},
year = {2021}
}
Comments
Submitted to the proceeding of the 2020 World Congress of the Econometric Society