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How can governments attract entrepreneurs and their businesses? The view that new business creation grows with the optimal level of government investments remains appealing to policymakers. In contrast with this active approach, we build a…
With the increasing frequency of major natural disasters, understanding their political consequences is of paramount importance for democratic accountability. The existing literature is deeply divided, with some studies finding that voters…
Poverty maps are essential tools for governments and NGOs to track socioeconomic changes and adequately allocate infrastructure and services in places in need. Sensor and online crowd-sourced data combined with machine learning methods have…
Functions or 'functionings' enable to give a structure to any activity and their combinations constitute the capabilities which characterize economic assets such as work utility. The basic law of supply and demand naturally emerges from…
In this letter we present a stochastic dynamic model which can explain economic cycles. We show that the macroscopic description yields a complex dynamical landscape consisting of multiple stable fixed points, each corresponding to a split…
In a social dilemma game group members are allowed to decide if they contribute to the joint venture or not. As a consequence, defectors, who do not invest but only enjoy the mutual benefit, prevail and the system evolves onto the tragedy…
The recovery of society after a large scale disaster generally consists of two phases, short- and long-term recoveries. The problem of short-term recovery is rather close to the problem of resilience in their goal, namely, bouncing the…
Reducing wealth inequality and increasing utility are critical issues. This study reveals the effects of redistribution and consumption morals on wealth inequality and utility. To this end, we present a novel approach that couples the…
Urban scaling theory explains the increasing returns to scale of urban wealth indicators by the per capita increase of human interactions within cities. This explanation implicitly assumes urban areas as isolated entities and ignores their…
In the current environment of financial distress, many governments are likely to soon become major holders of financial assets, but the policy debate focuses only on the likelihood and extent of short-term market stabilization. This paper…
The size or energy of diverse structures or phenomena in geoscience appears to follow power-law distributions. A rigorous statistical analysis of such observations is tricky, though. Observables can span several orders of magnitude, but the…
The career of an employee can be described (under certain circumstances) by a random walk, where the states of the random walk are determined by the level and position of an employee. At each decision moment the state of the employee is…
The study explores the evolution of Chile's industrial policy from 1990 to 2022 through the lens of state capacity, innovation and endogenous development. In a global context where governments are reasserting their role as active agents of…
Ecological communities exhibit pervasive patterns and inter-relationships between size, abundance, and the availability of resources. We use scaling ideas to develop a unified, model-independent framework for understanding the distribution…
The scale and terms of aggregate borrowing in an economy depend on the manner in which wealth is distributed across potential creditors with heterogeneous beliefs about the future. This distribution evolves over time as uncertainty is…
International taxation rules are outdated, allowing multinationals to shift profits to tax havens. This paper examines how tax reforms affect profit shifting and cross-country welfare. We propose a model that separates real economic profits…
The quantum fluctuations of a physical property can be observed in the measurement statistics of any measurement that is at least partially sensitive to that physical property. Quantum theory indicates that the effective distribution of…
In this paper, we explore the relationship between state-level household income inequality and macroeconomic uncertainty in the United States. Using a novel large-scale macroeconometric model, we shed light on regional disparities of…
Global inequality has shifted inward, with rising dispersion increasingly occurring within countries rather than between them. Using 8,790 newly harmonised Functional Urban Areas (FUAs), micro-founded labour-market regions encompassing 3.9…
The transient fluctuation of the prosperity of firms in a network economy is investigated with an abstract stochastic model. The model describes the profit which firms make when they sell materials to a firm which produces a product and the…