In this study, we develop a dynamic system model that exhibits only one stable solution (sink) to analyze the impact of various factors on low-carbon transition, including policy implications, energy consumption, and energy capacity. Our aim is to provide policy recommendations based on the...

To investigate and create theories of socio-economic dynamics has always been relevant for professionals in theoretical and applied economics. These theories are urgent in periods of global and catastrophic events since, on the one hand, they can explain the emergence of critical structural...

We analyze the role of industrial and non-industrial production sectors in the US economy by adopting a novel multilevel factor model. The proposed model is suitable for high-dimensional panels of economic time series and allows for interdependence structures across multiple sectors. The...

This paper addresses the poor performance of the Expectation-Maximization (EM) algorithm in the estimation of low-noise dynamic factor models, commonly used in macroeconomic forecasting and nowcasting. We show analytically and in Monte Carlo simulations how the EM algorithm stagnates in a...

This paper provides estimation and inference methods for conditional average treatment effects (CATE) characterized by a high‐dimensional parameter in both homogeneous cross‐sectional and unit‐heterogeneous dynamic panel data settings. In our leading example, we model CATE by interacting...

Using a dynamic factor model with stochastic volatility, we examine the synchronization of temperature and precipitation changes across countries and regions. By doing so, we analyze the implications for the medium-term economic outlook and vulnerability to climate risks. Our findings reveal...

The article examines the impact of endogenous deposits created by loans on the liquidity of a commercial bank. A developed discrete dynamic model of liquidity is based in particular on the application of a non-traditional indicator of turnover of liquid assets, namely, the ratio of debit...