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This paper develops a new model of business cycles. The model is economical in that it is solved with an aggregate demand-aggregate supply diagram, and the effects of shocks and policies are obtained by comparative statics. The model builds…

Theoretical Economics · Economics 2022-03-22 Pascal Michaillat , Emmanuel Saez

Recent studies on fairness in automated decision making systems have both investigated the potential future impact of these decisions on the population at large, and emphasized that imposing ''typical'' fairness constraints such as…

Machine Learning · Computer Science 2019-11-19 Joshua Williams , J. Zico Kolter

Imitation is fundamental in the understanding of social system dynamics. But the diversity of imitation rules employed by modelers proves that the modeling of mimetic processes cannot avoid the traditional problem of endogenization of all…

Adaptation and Self-Organizing Systems · Physics 2007-05-23 David Chavalarias

We have used agent-based modeling as our numerical method to artificially simulate a dynamic real economy where agents are rational maximizers of an objective function of Cobb-Douglas type. The economy is characterised by heterogeneous…

Theoretical Economics · Economics 2024-01-17 Subhamon Supantha , Naresh Kumar Sharma

We study an agent-based model of evolution of wealth distribution in a macro-economic system. The evolution is driven by multiplicative stochastic fluctuations governed by the law of proportionate growth and interactions between agents. We…

Physics and Society · Physics 2019-11-22 Zdzislaw Burda , Pawel Wojcieszak , Konrad Zuchniak

We present a macroeconomic agent-based model that combines several mechanisms operating at the same timescale, while remaining mathematically tractable. It comprises enterprises and workers who compete in a job market and a commodity goods…

General Finance · Quantitative Finance 2012-11-26 Cornelia Metzig , Mirta Gordon

Across income groups and countries, individual citizens perceive economic inequality spectacularly wrong. These misperceptions have far-reaching consequences, as it is perceived inequality, not actualinequality informing redistributive…

General Economics · Economics 2022-04-05 Jan Schulz , Daniel M. Mayerhoffer , Anna Gebhard

When banks choose similar investment strategies the financial system becomes vulnerable to common shocks. We model a simple financial system in which banks decide about their investment strategy based on a private belief about the state of…

Economics · Quantitative Finance 2014-08-05 Christoph Aymanns , Co-Pierre Georg

The sustainability of cooperation is crucial for understanding the progress of societies. We study a repeated game in which individuals decide the share of their income to transfer to other group members. A central feature of our model is…

General Economics · Economics 2025-10-31 Pau Juan-Bartroli , Esteban Muñoz-Sobrado

Why are human societies unstable? Theories based on the observation of recurring patterns in historical data indicate that economic inequality, as well as social factors are key drivers. So far, models of this phenomenon are more…

Physics and Society · Physics 2025-06-24 Alexander Jochim , Stefan Bornholdt

We propose a stochastic map model of economic dynamics. In the last decade, an array of observations in economics has been investigated in the econophysics literature, a major example being the universal features of inequality in terms of…

General Finance · Quantitative Finance 2015-05-27 Anindya S. Chakrabarti

Many classical models of collective behavior assume that emergent dynamics result from external and observable interactions among individuals. However, how collective dynamics in human populations depend on the internal psychological…

Physics and Society · Physics 2024-09-27 Alice C Schwarze , Mari Kawakatsu , Sarah Iams , Nina H Fefferman , Tahra L Eissa

This paper extends Xing's (2023abcd) optimal growth models of catching-up economies from the case of production function switching to that of economic structure switching and argues how a country develops its economy by endogenous…

Theoretical Economics · Economics 2023-09-13 Justin Y. F. Lin , Haipeng Xing

Analysis of the urban population fraction data for sixteen populous countries over the last fifty years reveals a universal increase in urbanization, exhibiting four qualitatively distinct temporal patterns: (i) continuously accelerating…

Physics and Society · Physics 2026-01-06 Neeraj Pandey , Abhineet Agarwal , Raju Roychowdhury , Karmeshu , Parth Pratim Pandey

Decisions taken in our everyday lives are based on a wide variety of information so it is generally very difficult to assess what are the strategies that guide us. Stock market therefore provides a rich environment to study how people take…

General Finance · Quantitative Finance 2016-09-28 Mario Gutiérrez-Roig , Carlota Segura , Jordi Duch , Josep Perelló

The study of fairness in intelligent decision systems has mostly ignored long-term influence on the underlying population. Yet fairness considerations (e.g. affirmative action) have often the implicit goal of achieving balance among groups…

Machine Learning · Computer Science 2020-03-02 Hussein Mozannar , Mesrob I. Ohannessian , Nathan Srebro

The processes of ecological interactions, dispersal and mutations shape the dynamics of biological communities, and analogous eco-evolutionary processes acting upon economic entities have been proposed to explain economic change. This…

Econometrics · Economics 2023-01-24 Victor Boussange , Didier Sornette , Heike Lischke , Loïc Pellissier

Decision-making individuals are typically either an imitator, who mimics the action of the most successful individual(s), a conformist (or coordinating individual), who chooses an action if enough others have done so, or a nonconformist (or…

Dynamical Systems · Mathematics 2022-02-11 Hien Le , Mohaddeseh Rajaee , Pouria Ramazi

Statistical models are often structurally unidentifiable, because different sets of parameters can lead to equal model outcomes. To be useful for prediction and parameter inference from data, stochastic population models need to be…

Populations and Evolution · Quantitative Biology 2025-03-19 Jose A. Capitan , David Alonso

We explore the role of non-ergodicity in the relationship between income inequality, the extent of concentration in the income distribution, and mobility, the feasibility of an individual to change their position in the income distribution.…

General Economics · Economics 2022-04-27 Viktor Stojkoski , Petar Jolakoski , Arnab Pal , Trifce Sandev , Ljupco Kocarev , Ralf Metzler