Skip to content

Commit bb25a16

Browse files
Tom's Dec 30 edits of composite matching lecture
1 parent 4608c43 commit bb25a16

File tree

1 file changed

+8
-3
lines changed

1 file changed

+8
-3
lines changed

lectures/match_transport.md

Lines changed: 8 additions & 3 deletions
Original file line numberDiff line numberDiff line change
@@ -17,6 +17,11 @@ kernelspec:
1717

1818
## Overview
1919

20+
Optimal transport theory is studies how one (marginal) probabilty measure can be related to another (marginal) probability measure in an ideal way.
21+
22+
The output of such a theory is a **coupling** of the two probability measures, i.e., a joint probabilty
23+
measure having those two marginal probability measures.
24+
2025
This lecture describes how Job Boerma, Aleh Tsyvinski, Ruodo Wang,
2126
and Zhenyuan Zhang {cite}`boerma2023composite` used optimal transport theory to formulate and solve an equilibrium of a model in which wages and allocations of workers across jobs adjust to match measures of different types with measures of different types of occupations.
2227

@@ -25,17 +30,17 @@ that costs of mismatch can be concave.
2530

2631
That means that it possible that equilibrium there is neither **positive assortive** nor **negative assorting** matching, an outcome that {cite}`boerma2023composite` call **composite assortive** matching.
2732

28-
In such an equilibrium with composite matching, for example, identical workers can sort into different occupations, some positively and some negatively.
33+
For example, in an equilibrium with composite matching, identical **workers** can sort into different **occupations**, some positively and some negatively.
2934

3035
{cite}`boerma2023composite`
3136
show how this can generate distinct distributions of labor earnings within and across occupations.
3237

3338

3439
This lecture describes the {cite}`boerma2023composite` model and presents Python code for computing equilibria.
3540

36-
It then applies the code to their model of labor markets.
41+
The lecture applies the code to the {cite}`boerma2023composite` model of labor markets.
3742

38-
As with our earlier lecture on optimal transport (https://python.quantecon.org/opt_transport.html), a key tool will be **linear programming**.
43+
As with an earlier QuantEcon lecture on optimal transport (https://python.quantecon.org/opt_transport.html), a key tool will be **linear programming**.
3944

4045

4146

0 commit comments

Comments
 (0)