Related papers: Not-so-Cleansing Recessions
We study the relationship between firms' performance and their technological portfolios using tools borrowed from the complexity science. In particular, we ask whether the accumulation of knowledge and capabilities related to a coherent set…
We study optimal scheduling in multi-class queueing systems with reentrance, where jobs may return for additional service after completion. Such reentrance creates feedback loops that fundamentally alter congestion dynamics and challenge…
We analyze the performance of redundancy in a multi-type job and multi-type server system. We assume the job dispatcher is unaware of the servers' capacities, and we set out to study under which circumstances redundancy improves the…
We consider a population of identical individuals preying on an exhaustible resource. The individuals in the population choose a strategy that defines how they use their available time over the course of their life for feeding, for…
Older male workers exhibit diverse retirement behaviors across occupations and respond differently to policy changes, influenced significantly by the part-time penalty-wage reduction faced by part-time workers compared to their full-time…
Redundancy mechanisms consist in sending several copies of a same job to a subset of servers. It constitutes one of the most promising ways to exploit diversity in multiservers applications. However, its pros and cons are still not…
We show that world trade network datasets contain empirical evidence that the dynamics of innovation in the world economy follows indeed the concept of creative destruction, as proposed by J.A. Schumpeter more than half a century ago.…
We investigate the impact of an exogenous environment on the emergence of social herding of economic sentiment. An interactions-driven dynamics of economic sentiment is modeled by an Ising model on a large (two-dimensional) square lattice.…
The diffusion of Generative AI (GenAI) constitutes a supply shock of a fundamentally different nature: while marginal production costs approach zero, content generation creates congestion externalities through information pollution. We…
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,…
Leaving the joint enterprise when defection is unveiled is always a viable option to avoid being exploited. Although loner strategy helps the population not to be trapped into the tragedy of the commons state, it could offer only a modest…
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…
This article derives prognostic expressions for the evolution of globally aggregated economic wealth, productivity, inflation, technological change, innovation and growth. The approach is to treat civilization as an open, non-equilibrium…
Modern macroeconomic theories were unable to foresee the last Great Recession and could neither predict its prolonged duration nor the recovery rate. They are based on supply-demand equilibria that do not exist during recessionary shocks.…
Power law distributions of macroscopic observables are ubiquitous in both the natural and social sciences. They are indicative of correlated, cooperative phenomena between groups of interacting agents at the microscopic level. In this paper…
Existing research on the static effects of the manipulation of welfare program benefit parameters on labor supply has allowed only restrictive forms of heterogeneity in preferences. Yet preference heterogeneity implies that the marginal…
Motivated by the widespread adoption of iterative project management techniques, we study the effects of workflow -- iterative or sequential -- on innovative behavior and performance. We conduct a series of laboratory experiments. Our first…
Production systems deteriorate stochastically due to usage and may eventually break down, resulting in high maintenance costs at scheduled maintenance moments. This deterioration behavior is affected by the system's production rate. While…
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…
Keeping up with "The Joneses" matters. This paper examines a model of reference dependent choice where reference points are determined by social comparisons. An increase in the strength of social comparisons, even by only a few agents,…