Economics - Finance III

When attempting to avoid global warming, individuals often face a social dilemma in which, besides securing uncertain future benefits, it is also necessary to reduce the chances of future losses. In this talk, I will resort to mathematical models and lab experiments to discuss different institutional approaches to this type of dilemmas. Inspired by the design principles proposed by the late Nobel Laureate Elinor Ostrom, I will discuss the evolution and impact of a new form of institutional sanctioning, where punishment is graduated, growing with the incidence of free-riding.

The study of scaling in financial systems has been a field of investigation for many years now. Previous studies have shown that financial series, especially from stock-markets, display multiscaling, which is nowadays widely accepted as an empirical stylized fact of financial time series. However, scaling in a financial time series has also been shown to vary with time.

We introduce simplicial persistence, a measure of time evolution of network motifs in subsequent temporal layers [1]. We observe long memory in the evolution of structures from correlation filtering, with a two regime power law decay in the number of persistent simplicial complexes. Null models of the underlying time series are tested to investigate properties of the generative process and its evolutional constraints.

Economic growth is associated with the diversification of economic activities, which can be observed via the evolution of product export baskets. Exporting a new product is dependent on having, and acquiring, a specific set of capabilities, making the diversification process path-dependent. Taking an agnostic view on the identity of the capabilities, we derive a probabilistic model for the directed dynamical process of capability accumulation and product diversification of countries.

The purpose of this work is to investigate of the influence of a financial crisis to the structural model of the economy. Research interest of how a financial crisis interferes on major economic indicators, lead us to check whether there are noticeable changes on linkages of endogenous economic variables behaviour over time. The Great Recession of 2008 (Subprime Mortgages Crisis) is chosen to be investigated. Main American economic indicators abstracted from the area of monetary policy and macroeconomics, are chosen to be investigated.