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Optimal Transport Methods in Economics
Alfred Galichon

Hardcover | 2016 | $55.00 | £45.95 | ISBN: 9780691172767
184 pp. | 6 x 9 1/4 | 2 halftones. 5 line illus. 2 maps.
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eBook | ISBN: 9781400883592 |
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Optimal Transport Methods in Economics is the first textbook on the subject written especially for students and researchers in economics. Optimal transport theory is used widely to solve problems in mathematics and some areas of the sciences, but it can also be used to understand a range of problems in applied economics, such as the matching between job seekers and jobs, the determinants of real estate prices, and the formation of matrimonial unions. This is the first text to develop clear applications of optimal transport to economic modeling, statistics, and econometrics. It covers the basic results of the theory as well as their relations to linear programming, network flow problems, convex analysis, and computational geometry. Emphasizing computational methods, it also includes programming examples that provide details on implementation. Applications include discrete choice models, models of differential demand, and quantile-based statistical estimation methods, as well as asset pricing models.

Authoritative and accessible, Optimal Transport Methods in Economics also features numerous exercises throughout that help you develop your mathematical agility, deepen your computational skills, and strengthen your economic intuition.

  • The first introduction to the subject written especially for economists
  • Includes programming examples
  • Features numerous exercises throughout
  • Ideal for students and researchers alike

Alfred Galichon holds joint appointments in the Department of Economics and the Courant Institute of Mathematical Sciences at New York University. He is on the editorial boards of the Review of Economic Studies and Economic Theory and is a research fellow at the Center for Economic and Policy Research (CEPR) and the Institute for the Study of Labor (IZA).

Reviews:

"As the author develops it, the theory is almost always very clear. The approach that Galichon has developed, based on linear programming, is receiving increased attention from economists and mathematicians in spite of its obvious complexity. . . . [A] clear and succinct analysis and discussion."--Choice

Endorsements:

"This book is a valuable contribution to a rapidly expanding literature, written by a leader in the field."--James J. Heckman, University of Chicago, winner of the Nobel Prize in economics

"Since its inception, the mathematical theory of optimal transportation has served as a secret weapon in the hands of a few scholars for tackling outstanding challenges in economics, ranging from matching and price theory to econometrics and finance. With the publication of Galichon's engaging and accessible text, the secret is revealed to a new generation of students and researchers; I expect much progress to result."--Robert J. McCann, University of Toronto

"Economic applications of optimal transport problems have recently flourished. This book, written by one of the best specialists of the field, provides a detailed presentation of the mathematical tools involved, from the abstract foundations of the theory to the practical implementation of optimizing algorithms, with applications ranging from the analysis of the labor market to the resolution of difficult problems in econometrics. For any student or researcher interested in the topic, this is a must-read."--Pierre-André Chiappori, Columbia University

"I am aware of no other book on the subject written especially for economists."--Philipp Kircher, University of Edinburgh

"Very timely. Until now, there was no focused yet coherent introduction to the subject available to economic theorists."--Rakesh Vohra, University of Pennsylvania

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