Optimal transportation and the falsifiability of incompletely specified economic models

Ivar Ekeland, Alfred Galichon and Marc Henry

Papers from arXiv.org

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.

Date: 2021-02, Revised 2021-02
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published in Economic Theory 42 (2010) pp. 355-374

Downloads: (external link)
http://arxiv.org/pdf/2102.04162 Latest version (application/pdf)

Related works:
Journal Article: Optimal transportation and the falsifiability of incompletely specified economic models (2010)
Working Paper: Optimal transportation and the falsifiability of incompletely specified economic models (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:arx:papers:2102.04162

Access Statistics for this paper

More papers in Papers from arXiv.org
Bibliographic data for series maintained by arXiv administrators ().