on optimal transport
and economic applications
January 18-22, 2021
This intensive course, part of the ‘math+econ+code’ series, is focused on models of demand, matching models, and optimal transport methods, with various applications pertaining to labor markets, economics of marriage, industrial organization, matching platforms, networks, and international trade, from the crossed perspectives of theory, empirics and computation. It will introduce tools from economic theory, mathematics, econometrics and computing, on a needs basis, without any particular prerequisite other than the equivalent of a first year graduate sequence in econ or in applied math.
Because it aims at providing a bridge between theory and practice, the teaching format is somewhat unusual: each teaching “block” will be made of a mix of theory and coding (in Python), based on an empirical application related to the theory just seen. Students are expected to write their own code, which is expected to be operational at the end of each block. This course is therefore closer to cooking lessons than to traditional lectures.
• The course will be taught online over five consecutive days, January 18-22, 2021, 8am - 12noon US Eastern time / 2pm-6pm Paris time.
• Additionally, five advanced lectures will be taught online on a monthly basis afterwards, February- June 2021. Precise days of the lectures will be announced later.
• The instructor is Alfred Galichon (professor of economics and of mathematics at NYU and affiliate professor at Sciences Po), and the TA is Jules Baudet (graduate student at ENS, EQUIPRICE team member).
Day 1: basics of linear programming
Monday 1/18, 4h
The diet problem and linear programming duality. Network flow problems. Dynamic programming.
Day 2: optimal transport
Tuesday 1/19, 4h
The optimal assignment problem. Entropic regularization and the IPFP. Semi-discrete optimal transport.
Day 3: random utility models
Wednesday 1/20, 4h
The Emax operator and the entropy of choice. Demand inversion via optimal transport.
Day 4: models of demand
Thursday 1/21, 4h
The pure characteristics model. The random coefficients logit model.
Day 5: matching models with transferable utility
Friday 1/22, 4h
Matching estimation. The Choo and Siow model. The gravity equation and its estimation.
+ 5 advanced lectures
February to June, 2h each
Lectures on related advanced mathematical / computational topics to complement the masterclasses and solidify the theoretical knowledge.
Special lecture 1
Feb 5, 2pm-4pm CET
Guest speakers: Flavien Léger (Sciences Po) and James Nesbit (NYU).
Special lecture 2
Estimation of dynamic discrete choice problems
March 5, 2pm-4pm CET
Special lecture 3
Kidney exchange problems
April 16, 2pm-4pm
Special lecture 4
May 14, 2pm-4pm CET
Special lecture 5
Traffic congestion, June 4, 2pm-4pm CET