Optimal transportation and the falsifiability of incompletely specified economic models

DOI10.1007/S00199-008-0432-YMaRDI QIDQ847816zbMATH OpenOpenAlexFDO

Authors Ivar Ekeland, Alfred Galichon, Marc Henry

Publication date 19 February 2010

Published in Economic Theory (Search for Journal in Brave)

Full work available at URL https://arxiv.org/abs/2102.04162

zbMATH Keywords

incompletely specified modelsoptimal transportation

Mathematics Subject Classification ID

Applications of statistics to economics (62P20) Transportation, logistics and supply chain management (90B06) Minimax problems in mathematical programming (90C47) Statistical methods; economic indices and measures (91B82)

Abstract: A general framework is given to analyze the falsifiability of economic models based on a sample of their observable components. It is shown that, when the restrictions implied by the economic theory are insufficient to identify the unknown quantities of the structure, the duality of optimal transportation with zero-one cost function delivers interpretable and operational formulations of the hypothesis of specification correctness from which tests can be constructed to falsify the model.

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Cited in

(8)

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