This work identifies the intellectual influences that supported Hayek's computational perspective as well as recognition that Hayek received from computational theorists in the decades following the publication of The Sensory Order. Having outlined Hayek's computational approach, I argue that 1)...

We introduce a novel approach to solving dynamic programming problems, such as those in many economic models, on a quantum annealer, a specialized device that performs combinatorial optimization. Quantum annealers attempt to solve an NP-hard problem by starting in a quantum superposition of all...

We introduce a novel approach to solving dynamic programming problems, such as those in many economic models, on a quantum annealer, a specialized device that performs combinatorial optimization. Quantum annealers attempt to solve an NP-hard problem by starting in a quantum superposition of all...

This work identifies the intellectual influences that supported Hayek's computational perspective as well as recognition that Hayek received from computational theorists in the decades following the publication of The Sensory Order. Having outlined Hayek's computational approach, I argue that 1)...

The ongoing revolution in artificial intelligence, especially deep learning, is transforming research across many fields, including economics. Its impact is particularly strong in solving equilibrium economic models. These models often lack closed-form solutions, so economists have relied on...

The objective of this paper is to demystify AI agents - autonomous LLM-based systems that plan, use tools, and execute multi-step research tasks - and to provide hands-on instructions for economists to build their own, even if they do not have programming expertise. As AI has evolved from simple...

During the last decade, property prices in Germany steadily appreciated and reached an all-time high in 2022. In the wake of the global financial crisis that was triggered by a housing market bubble in the U.S., banking authorities introduced an additional systemic risk buffer. This buffer aims...

During the last decade, property prices in Germany steadily appreciated and reached an all-time high in 2022. In the wake of the global financial crisis that was triggered by a housing market bubble in the U.S., banking authorities introduced an additional systemic risk buffer. This buffer aims...

The Sustainable Development Goals are global objectives set by the UN. They cover fundamental issues in development such as poverty, education, economic growth, and climate. Despite growing data across policy dimensions, popular statistical approaches offer limited solutions as these datasets...

We argue that deep learning provides a promising avenue for taming the curse of dimensionality in quantitative economics. We begin by exploring the unique challenges posed by solving dynamic equilibrium models, especially the feedback loop between individual agents' decisions and the aggregate...

Playing, Voting, and Dividing -- Playing Successfully: Noncooperative Game Theory -- Cooperative Game Theory -- Voting and Judging: Preference Aggregation by Voting -- The Complexity of Manipulative Actions in Single-Peaked Societies -- Multiwinner Voting -- Judgment Aggregation -- Fair...

We propose a general and highly efficient method for solving and estimating general equilibrium heterogeneous-agent models with aggregate shocks in discrete time. Our approach relies on the rapid computation of sequence-space Jacobians—the derivatives of perfect-foresight equilibrium mappings...

We provide a general framework for incorporating many types of micro data from summary statistics to full surveys of selected consumers into Berry, Levinsohn, and Pakes (1995)-style estimates of differentiated products demand systems. We extend best practices for BLP estimation in Conlon and...

We introduce a novel approach to solving dynamic programming problems, such as those in many economic models, on a quantum annealer, a specialized device that performs combinatorial optimization. Quantum annealers attempt to solve an NP-hard problem by starting in a quantum superposition of all...

At present, computational methods have received considerable attention in economics and finance as an alternative to conventional analytical and numerical paradigms. This Special Issue brings together both theoretical and application-oriented contributions, with a focus on the use of...

Part I: Static Frameworks -- Chapter 1. A Basic Static Model -- Chapter 2. Extensions of the Basic Model: The Role of MarketStructure -- Chapter 3. A Static Model with Damage Functions -- Part II: Dynamic Frameworks -- Chapter 4. Dynamic Analysis of Climate Policies: A Two-period Model --...

We propose a general and highly efficient method for solving and estimating general equilibrium heterogeneous-agent models with aggregate shocks in discrete time. Our approach relies on the rapid computation and composition of sequence-space Jacobians--the derivatives of perfect-foresight...

This paper presents DSGE Nash, a toolkit to solve for pure strategy Nash equilibria of global games in macro models. Although primarily designed to solve for Nash equilibria in DSGE models, the toolkit encompasses a broad range of options including solutions up to the third order, multiple...

This paper presents DSGE Nash, a toolkit to solve for pure strategy Nash equilibria of global games in macro models. Although primarily designed to solve for Nash equilibria in DSGE models, the toolkit encompasses a broad range of options including solutions up to the third order, multiple...

Chaper 1. A Holistic Approach to Human Behavior (Orlando Gomes) -- Chapter 2. Complexity and the World of Heterogeneous People (Orlando Gomes) -- Chapter 3. Innovation and Skills: a Contamination Lab Experience in Higher Education Institutions (Subhankar Das) -- Chapter 4. Networks and...

Part I: Representative Agent Models: Basic Models -- Perturbation Methods: Framework and Tools -- Perturbation Methods: Solutions -- Perturbation Methods: Model Evaluation and Applications -- Weighted Residuals Methods -- Simulation-Based Methods -- Discrete State Space Value Function Iteration...

This book features a collection of high-quality and peer-reviewed papers from the 2023 7th International Conference on Applied Economics and Business, which was held in Copenhagen, Denmark, during August 24-26, 2023. ICAEB is held annually as a platform for the presentation of new advances and...

In this review we discuss advances in the agent-based modeling of economic and social systems. We show the state of the art of the heuristic design of agents and how behavioral economics and laboratory experiments have improved the modeling of agent behavior. We further discuss how economic...

1: Introduction -- 2: Intuitions about Welfare – Under the Constraint of Computability -- 3: Sraffa, Keynes and a New Paradigm -- 4: On the Meaning Maximization Doctrine: An Alternative to the Utilitarian Doctrine -- 5: A Generalization of Sraffa’s Notion of “Viability” in a ‘Land...

Chapter 1 “Introduction” by Herbert Dawid and Jasmina Arifovic -- Chapter 2. “Cross-bidding in eBay-like Environments” by Francisco Alvarez and Marcello Sartarelli -- Chapter 3. “Risk–Reward Ratio Optimisation (Revisited)” by Manfred Gilli and Enrico Schumann -- Chapter 4....

This book analyses decision-making in dynamic economic environments. By applying a wide range of methodological approaches, combining both analytical and computational methods, the contributors examine various aspects of optimal firm behaviour and relevant policy areas. Topics covered include...

The global financial crisis and the ensuing criticism of macroeconomics have inspired researchers to explore new modeling approaches. There are many new models that deliver improved estimates of the transmission of macroeconomic policies and aim to better integrate the financial sector in...

At present, computational methods have received considerable attention in economics and finance as an alternative to conventional analytical and numerical paradigms. This Special Issue brings together both theoretical and application-oriented contributions, with a focus on the use of...