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Workers separate from jobs, search for jobs, accept jobs, and fund consumption with their wages. Firms recruit workers to fill vacancies. Search frictions prevent firms from instantly hiring available workers. Unemployment persists. These…

General Economics · Economics 2023-11-13 Rich Ryan

The COVID-19 pandemic reignited debate on the U.S. Phillips curve. Using MSA-level panel data (2001-2024), we employ a Two-Stage Least Squares (2SLS) instrumental variable strategy with a shift-share instrument to estimate core non-tradable…

General Economics · Economics 2025-06-18 Hanyuan Jiang

In mainstream neoclassical economics, utility maximization is the only engine of individual action, and the other or the social, if it is modeled for decisions deemed fundamental, it is done as a tacit externality parameter affecting an…

Theoretical Economics · Economics 2026-02-24 Alfio Giarlotta , M. Ali Khan , Angelo Enrico Petralia , Francesco Reito

Although empirical literature regarding the Phillips curve is sizeable enough, there is still no wide consensus on its validity and stability. The literature shows that the Phillips relationship is fragile and varies across countries and…

General Economics · Economics 2025-12-01 Yhlas Sovbetov , Muhittin Kaplan

Do firm dynamics matter for the transmission of monetary policy? Empirically, the startup rate declines following a monetary contraction, while the exit rate increases, both of which reduce aggregate employment. I present a model that…

General Economics · Economics 2020-11-09 Matthew Read

Product diversity, which is highly important in economic systems, has been highlighted by recent studies on international trade. We found an empirical pattern, designated as the "S-shaped curve", that models the relationship between…

Physics and Society · Physics 2015-06-15 Hongmei Lei , Jiang Zhang

The existence of involuntary unemployment advocated by J. M. Keynes is a very important problem of the modern economic theory. Using a three-generations overlapping generations model, we show that the existence of involuntary unemployment…

General Economics · Economics 2020-12-23 Yasuhito Tanaka

Emotional disorders and psychological flourishing are the result of complex interactions between positive and negative affects that depend on external events and the subject's internal representations. Based on psychological data, we…

Applications · Statistics 2015-05-19 Jonathan Touboul , Alberto Romagnoni , Robert Schwartz

This paper empirically assesses predictions of Goodwin's model of cyclical growth regarding demand and distributive regimes when integrating the real and financial sectors. In addition, it evaluates how financial and employment shocks…

General Economics · Economics 2024-01-15 Marcio Santetti

Structural change consists of industrial diversification towards more productive, knowledge intensive activities. However, changes in the productive structure bear inherent links with job creation and income distribution. In this paper, we…

General Economics · Economics 2026-05-13 Bernardo Caldarola , Dario Mazzilli , Aurelio Patelli , Angelica Sbardella

When does a crisis-induced surge in radical-party support fade away, and when does it become a durable realignment? We address this in a mathematical sociology threshold model on a conserved population. The baseline admits a global…

Physics and Society · Physics 2026-05-27 Alexander Omelchenko

We consider the relationship between economic activity and intervention, including monetary and fiscal policy, using a universal dynamic framework. Central bank policies are designed for growth without excess inflation. However,…

Physics and Society · Physics 2018-01-01 Yaneer Bar-Yam , Jean Langlois-Meurinne , Mari Kawakatsu , Rodolfo Garcia

Understanding the statistical dynamics of growth and inequality is a fundamental challenge to ecology and society. Recent analyses of wealth and income dynamics in contemporary societies show that economic inequality is very dynamic and…

Physics and Society · Physics 2022-10-19 Jordan T. Kemp , Luis M. A. Bettencourt

Predicting the future behaviour of complex systems exhibiting critical-like dynamics is often considered to be an intrinsically hard task. Here, we study the predictability of the depinning dynamics of elastic interfaces in random media…

Statistical Mechanics · Physics 2026-02-03 Valtteri Haavisto , Marcin Mińkowski , Lasse Laurson

We investigate state-dependent effects of fiscal multipliers and allow for endogenous sample splitting to determine whether the US economy is in a slack state. When the endogenized slack state is estimated as the period of the unemployment…

General Economics · Economics 2022-08-11 Sokbae Lee , Yuan Liao , Myung Hwan Seo , Youngki Shin

Discontinuities can be fairly arbitrary but also cause a significant impact on outcomes in larger systems. Indeed, their arbitrariness is why they have been used to infer causal relationships among variables in numerous settings. Regression…

Information Theory · Computer Science 2023-12-29 Ibtihal Ferwana , Suyoung Park , Ting-Yi Wu , Lav R. Varshney

Urban transformations within large and growing metropolitan areas often generate critical dynamics affecting social interactions, transport connectivity and income flow distribution. We develop a statistical-mechanical model of urban…

Physics and Society · Physics 2018-06-12 Emanuele Crosato , Ramil Nigmatullin , Mikhail Prokopenko

Macroeconomic theories of growth and wealth distribution have an outsized influence on national and international social and economic policies. Yet, due to a relative lack of reliable, system wide data, many such theories remain, at best,…

General Finance · Quantitative Finance 2016-08-30 Eamon Duede , Victor Zhorin

Motivated by a series of experiments that revealed a temperature dependence of the dynamic scaling regime of growing surfaces, we investigate theoretically how a nonequilibrium growth process reacts to a sudden change of system parameters.…

Statistical Mechanics · Physics 2015-05-14 Yen-Liang Chou , Michel Pleimling , R. K. P. Zia

The effect of a drift term in the presence of fixed boundaries is studied for the one-dimensional Edwards-Wilkinson equation, to reveal a general mechanism that causes a change of exponents for a very broad class of growth processes. This…

Statistical Mechanics · Physics 2007-05-23 Gunnar Pruessner