We propose a novel optimal transport-based version of the Generalized Method of Moment (GMM). Instead of handling overidentified models by reweighting the data until all moment conditions are satisfied (as in Generalized Empirical Likelihood methods), this method proceeds by introducing...

Economic models often depend on quantities that are unobservable, either for privacy reasons or because they are difficult to measure. Examples of such variables include human capital (or ability), personal income, unobserved heterogeneity (such as consumer "types"), etc. This situation has...