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Optimal transportation and the falsifiability of incompletely specified economic models

Ivar Ekeland, Alfred Galichon, Marc Henry

arXiv 8 Feb 2021 · Econometrics · publishedEconomic Theory (2009) · 40 citations (OpenAlex)

arXiv:2102.04162 · PDF · DOI · OpenAlex · Extracted main text

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.

Citation extraction

36
references
45
in-text mentions
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distinct cited
5
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appendix boundary found by appendix_command · 87% of the source is main text. Read the extracted text to check this.

Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Villani, C (2003) Topics in Optimal Transportation0.64422100%
2Tamer, Elie (2003) Incomplete simultaneous discrete response model with multiple equilibria0.58531100%
3Berry, Steve, Tamer, Elie (2006) Identification in models of oligopoly entry0.51121100%
4Ciliberto, Federico, Tamer, Elie (2006) Market structure and multiple equilibria in airline markets0.51121100%
5Galichon, Alfred, Henry, Marc (2008) A test of non-identifying restrictions and confidence regions for partially identified parameters self0.51121100%
6Andrews, Donald, Berry, Steven, Jia, Panle (2003) Placing bounds on parameters of entry games in the presence of multiple equilibria0.40511100%
7Artstein, Zvi (1983) Distributions of random sets and random selections0.40511100%
8Barrio, Eustasio, Cuestas-Albertos, Juan, Matrán, Carlos, Rodríguez-… (1999) Tests of goodness-of-fit based on the L2 Wasserstein distance0.40511100%
9Brock, Buzz, Durlauf, Steve (2001) Discrete choice with social interactions0.40511100%
10Bresnahan, Tim, Reiss, P (1990) Entry in monopoly markets0.40511100%

Showing the top 10 of 36 scored citations.

Cited by, within the corpus

arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.

Citing paperIntensityMentionsSections
1Policy Transforms and Learning Optimal Policies I thank Jiaying Gu, Ismael Mourifie, Eduardo Souza-Rodrigues, Adam Rosen, Stanislav Volgushev and Yuanyuan Wan for their feedback and encouragement, and I am especially grateful to JoonHwan Cho for many hours of discussion that helped to improve this paper. A previous version of this paper appeared in my doctoral thesis at the University of Toronto. This research was supported by the Social Sciences and Humanities Research Council of Canada. All errors are my own0.87462
2On the falsification of instrumental variable models for heterogeneous treatment effects0.64422
3Identification and Counterfactual Analysis in Incomplete Models with Support and Moment Restrictions0.64422
4An econometrician's guide to optimal transport0.58531
5Quantile Models with Endogeneity0.40511
6Stochastic Revealed Preferences with Measurement Error0.40511
7Counterfactual Sensitivity and Robustness0.40511
8Set identification in models with multiple equilibria0.40511
9An Adversarial Approach to Identification0.40511