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Article

English

ID: <

10670/1.xrwagn

>

Where these data come from
Optimal transportation and the falsifiability of incompletely specified economic models

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 costfunction delivers interpretable and operational formulations of the hypothesis of specificationcorrectness from which tests can be constructed to falsify the model.

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