# PSE lectures

## Short course

# Optimal transport and economic applications

*PSE summer school, June 22-26, 2020*

### Content

This short course is focused on optimal transport theory and matching models and their applications to economics, in various fields such as labor markets, economics of marriage, industrial organization, matching platforms, networks, and international trade. It will provide the crossed perspectives of theory, empirics and computation. A particular emphasis will be given on computation (R and Python). This course is partly based on Galichon’s 2016 monograph, Optimal Transport Methods in Economics. Princeton University Press.

### Schedule

Wednesday, June 24, 9am-12:30pm

Thursday, June 25, 9am-12:30pm

Friday, June 26, 9am-11am

### Course material

The lecture slides will be available before each lecture.

### References

These lectures will be based on my text:

Galichon, A. (2016). *Optimal transport methods in economics*. Princeton.

Other references include:

∙ For mathematical foundations:

– [OTON] C. Villani, *Optimal Transport: Old and New*, AMS, 2008.

– [OTAM] F. Santambrogio, *Optimal Transport for Applied Mathematicians*, Birkhäuser, 2015.

∙ For an introduction with a fluid mechanics point of view:

– [TOT] C. Villani, *Topics in Optimal Transportation*, AMS, 2003.

∙ With a computational focus:

– [NOT] G. Peyré, M. Cuturi (2018). *Numerical optimal transport*, Arxiv.

∙ With a family economics focus:

– [MWT] P.-A. Chiappori. *Matching with Transfers: The Economics of Love and Marriage*, Princeton, 2017.

### Outline

• intro to optimal transport (3h)

• multinomial choice (3h)

• matching models (3h)