An econometrician's guide to optimal transport

2026-04-05

AI Summary

This study addresses the absence of systematic guidance on optimal transport theory and its applications in econometrics. It proposes a novel classification of optimal transport methods grounded in their mathematical structure and constructs a coherent theoretical framework that precisely maps distinct optimal transport approaches to specific econometric contexts. By integrating optimal transport theory, econometric modeling, and advanced mathematical analysis, this work establishes an accessible and actionable methodological bridge for both theoretical and applied econometricians. The framework substantially enhances the applicability and accessibility of optimal transport in empirical and structural econometric models, facilitating its broader adoption and rigorous implementation in economic research.

Technology Category

Game Theory and Economic Paradigms: ApplicationsSearch and Optimization: ApplicationsMachine Learning: Optimization

Application Category

Economics, Online Markets and Human Computation: Incentives in network design for Web infrastructures and ecosystemsGraph Algorithms and Modeling for the Web: Efficient manipulation of static and dynamic Web-related graphsSemantics and Knowledge: Methods, algorithms and applications for the development of semantic models, knowledge graphs and other forms of structured data models with machine-interpretable semantics

Abstract

We propose an overview of optimal transport theory and its applications to econometric methodology. This review is specifically designed for practitioners, be they econometric theorists or applied econometricians. The review of applications of optimal transport to econometrics is organized around the particular aspects of the mathematical theory of optimal transport they rely on.

Problem

• optimal transport
• econometrics
• methodology
• applications
• mathematical theory

Innovation

• optimal transport
• econometrics
• methodology
• mathematical theory
• applications