Related papers: Resolving Aaron's Social Insurance Paradox
We put a probabilistic framework on the Demographic Prisoner's Dilemma. In this model, cooperating and defecting individuals are placed on a torus to move and play prisoner's dilemma game, if they are on the same site. Each individual…
Managing unemployment is one of the key issues in social policies. Unemployment insurance schemes are designed to cushion the financial and morale blow of loss of job but also to encourage the unemployed to seek new jobs more pro-actively…
This thesis mainly focuses on two problems in capital structure and individual's life-cycle portfolio choice. In the first problem, we derive a stochastic control model to optimize banks' dividend and recapitalization policies and calibrate…
Humanity has been fascinated by the pursuit of fortune since time immemorial, and many successful outcomes benefit from strokes of luck. But success is subject to complexity, uncertainty, and change - and at times becoming increasingly…
Under preferential attachment (PA) network growth models late arrivals are at a disadvantage with regard to their final degrees. Previous extensions of PA have addressed this deficiency by either adding the notion of node fitness to PA,…
We study the power of item-pricing as a tool for approximately optimizing social welfare in a combinatorial market. We consider markets with $m$ indivisible items and $n$ buyers. The goal is to set prices to the items so that, when agents…
This paper proposes a simulation-based framework for assessing and improving the performance of a pension fund management scheme. This framework is modular and allows the definition of customized performance metrics that are used to assess…
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…
We quantify the benefit of collectivised investment funds, in which the assets of members who die are shared among the survivors. For our model, with realistic parameter choices, an annuity or individual fund requires approximately 20\%…
We study an optimal wage band problem in a competitive matching labor market where education signals worker ability. We prove uniqueness of the competitive signaling equilibrium under a general class of utility and profit functions and show…
To improve nonparametric estimates of lifetime distributions, we propose using the increasing odds rate (IOR) model as an alternative to other popular, but more restrictive, ``adverse ageing'' models, such as the increasing hazard rate one.…
This paper develops a framework for assessing the welfare effects of labor income tax changes on married couples. I build a static model of couples' labor supply that features both intensive and extensive margins and derive a tractable…
We study group fairness in the context of feedback loops induced by meritocratic selection into programs that themselves confer additional advantage, like college admissions. We introduce a stylized, yet novel inter-generational model for…
We compare the likelihood of different socially relevant features to allow the evolutionary emergence and maintenance of cooperation in a generalized variant of the iterated Prisoners Dilemma game. Results show that the average…
What is the emergent long-run equilibrium of a society where many interacting agents bet on the optimal energy to put in place in order to climb on the Bandwagon? In this paper we study the collective behavior of a large population of…
The impact of rising consumption on wealth inequality remains an open question. Here we revisit and extend the Social Architecture of Capitalism agent-based model proposed by Ian Wright, which reproduces stylized facts of wealth and income…
The rise of autonomous, AI-driven agents in economic settings raises critical questions about their emergent strategic behavior. This paper investigates these dynamics in the cooperative context of a multi-echelon supply chain, a system…
We present a theoretical framework assessing the economic implications of bias in AI-powered emergency response systems. Integrating health economics, welfare economics, and artificial intelligence, we analyze how algorithmic bias affects…
Brazil is the 5th largest country in the world, despite of having a ``High Human Development'' it is the 9th most unequal country. The existing Brazilian micro pension programme is one of the safety nets for poor people. To become eligible…
We consider the life-cycle optimal portfolio choice problem faced by an agent receiving labor income and allocating her wealth to risky assets and a riskless bond subject to a borrowing constraint. In this paper, to reflect a realistic…