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Commonly used methods of production function and markup estimation assume that a firm's output quantity can be observed as data, but typical datasets contain only revenue, not output quantity. We examine the nonparametric identification of…
Cooperation in heterogeneous groups, where individuals differ in resources, productivity, and behavioural responsiveness, underpins collective action across many social and biological systems. Introspection dynamics, in which each player…
Standard methods for estimating production functions in the Olley and Pakes (1996) tradition require assumptions on input choices. We introduce a new method that exploits (increasingly available) data on a firm's expectations of its future…
We argue that all building blocks of transformer models can be expressed with a single concept: combinatorial Hopf algebra. Transformer learning emerges as a result of the subtle interplay between the algebraic and coalgebraic operations of…
This paper examines the nonparametric identifiability of production functions, considering firm heterogeneity beyond Hicks-neutral technology terms. We propose a finite mixture model to account for unobserved heterogeneity in production…
The incentive ratio measures the utility gains from strategic behaviour. Without any restrictions on the setup, ratios for linear, Leontief and Cobb-Douglas exchange markets are unbounded, showing that manipulating the equilibrium is a…
The article examines how institutions, automation, unemployment and income distribution interact in the context of a neoclassical growth model where profits are interpreted as a surplus over costs of production. Adjusting the model to the…
IT-driven innovation is an enormous factor in the worldwide economic leadership of the United States. It is larger than finance, construction, or transportation, and it employs nearly 6% of the US workforce. The top three companies, as…
Pervasive cross-section dependence is increasingly recognized as a characteristic of economic data and the approximate factor model provides a useful framework for analysis. Assuming a strong factor structure where $\Lop\Lo/N^\alpha$ is…
In this work, it is demonstrated that the usual power system dynamic model exhibits a feedforward-feedback control structure. The distinct properties of the feedforward and feedback subsystems are identified and studied using respective…
Can trade integration induce product innovation? I document that countries that joined the European Union (EU) started producing more product varieties, investing more in R&D, and trading more compared to candidate countries that did not…
We study a portfolio management problem featuring many-player and mean field competition, investment and consumption, and relative performance concerns under the forward performance processes (FPP) framework. We focus on agents using power…
We propose a multivariate generative model to capture the complex dependence structure often encountered in business and financial data. Our model features heterogeneous and asymmetric tail dependence between all pairs of individual…
We study how tariffs affect industrial structure and welfare in an economy where sectors are complements and preferences are nonhomothetic -- two drivers of structural change. Import tariffs on a sector influence sectoral composition by…
Total factor productivity (TFP) is a key determinant of farm development, a sector that receives substantial public support. The issue has taken on great importance today, where the conflict in Ukraine has led to repercussions on the cereal…
Goodwin's model is a cornerstone in the study of dynamical systems within macroeconomics, explaining the interaction between employment ratio and wage share in a closed economy. Analogous to predator-prey dynamics in mathematical economics,…
When the complete understanding of a complex system is not available, as, e.g., for systems considered in the real-world, we need a top-down approach to complexity. In this approach one may start with the desire to understand general…
Federated Learning (FL) enables collaborative model training across distributed devices while preserving data privacy. Nonetheless, the heterogeneity of edge devices often leads to inconsistent performance of the globally trained models,…
Industrial policy has returned to the centre of economic governance, particularly in the high-tech sectors where positive network externalities in demand make market dominance self-reinforcing. This paper studies the welfare effects of an…
Temporal Point Processes (TPPs) hold a pivotal role in modeling event sequences across diverse domains, including social networking and e-commerce, and have significantly contributed to the advancement of recommendation systems and…