Related papers: Scale Economies and Aggregate Productivity
Efficient engineered systems require scalability. A scalable system has increasing performance with increasing system size. In an ideal case, the increase in performance (e.g., speedup) corresponds to the number of units that are added to…
We propose a combinatorial model of economic development. An economy develops by acquiring new capabilities allowing for the production of an ever greater variety of products of increasingly complex products. Taking into account that…
We study competitive equilibria in exchange economies when a continuum of goods is conflated into a finite set of commodities. The design of conflation choices affects the allocation of scarce resources among agents, by constraining trading…
This paper develops a framework for repeated matching markets. The model departs from the Gale-Shapley matching model by having a fixed set of long-lived hospitals match with a new generation of short-lived residents in every period. I show…
An employer contracts with a worker to incentivize efforts whose productivity depends on ability; the worker then enters a market that pays him contingent on ability evaluation. With non-additive monitoring technology, the interdependence…
Transport infrastructure systems operate in, and are shaped by, the specific context in which they are expected to perform and contribute to the system-of-systems that support civilised life; they must strive to be sustainable and…
We develop an alternative theory to the aggregate matching function in which workers search for jobs through a network of firms: the labor flow network. The lack of an edge between two companies indicates the impossibility of labor flows…
Understanding the structure and formation of networks is a central topic in complexity science. Economic networks are formed by decisions of individual agents and thus not properly described by established random graph models. In this…
This paper reviews some of the phenomenological models which have been introduced to incorporate the scaling properties of financial data. It also illustrates a microscopic model, based on heterogeneous interacting agents, which provides a…
This paper derives a closed-form expression linking aggregate markups on imported inputs to concentration in a model of firm-to-firm trade with two-sided market power. Our theory extends standard oligopoly insights in two dimensions. First,…
We study a class of heterogeneous agent-based models which are based on a basic set of principles, and the most fundamental operations of an economic system: trade and product transformations. A basic guiding principle is scale invariance,…
The production of waste as a consequence of human activities is one of the most fundamental challenges facing our society and global ecological systems. Waste generation is rapidly increasing, with corresponding shifts in the structure of…
How does the number of collaborators affect individual productivity? Results of prior research have been conflicting, with some studies reporting an increase in individual productivity as the number of collaborators grows, while other…
Heterogeneity of economic agents is emphasized in a new trend of macroeconomics. Accordingly the new emerging discipline requires one to replace the production function, one of key ideas in the conventional economics, by an alternative…
This paper highlights the potential for negative dynamic consequences of recent trends towards the formation of "skill-hubs". I first show evidence that skill acquisition is biased towards skills which are in demand in local labor markets.…
Efficiently solving the Job Shop Scheduling Problem in real-world industrial applications requires policies that are both computationally lean and topologically robust. While Reinforcement Learning has shown potential in automating…
The standard wage Phillips curve aggregates away from which workers reset wages when. I show this aggregation omits a first-order term: the covariance between workers' cost-push exposure and their reset frequency. I introduce two sufficient…
We consider a monopolistic seller in a market that may be segmented. The surplus of each consumer in a segment depends on the price that the seller optimally charges, which depends on the set of consumers in the segment. We study which…
The origin of economic crises is a key problem for economics. We present a model of long-run competitive markets to show that the multiplicity of behaviors in an economic system, over a long time scale, emerge as statistical regularities…
How do you scale a machine learning product at a startup? In particular, how do you serve a greater volume, velocity, and variety of queries cost-effectively? We break down costs into variable costs-the cost of serving the model and…