Anarchy, state, and utopia

Econometric policy evaluation: A critique

Business Cycles: A Theoretical, Historical, and Statistical Analysis of the Capitalist Process.

The History of Economic Analysis

Impact of COVID-19 on the travel and tourism industry

Austrian macroeconomists of the interwar period saw the economy as a complex adaptive system, in which macroeconomic variables emerge from the interaction between millions of purposefully acting agents. Recent advances in computation technology allow us to build empirically salient synthetic economies in silico, and thereby formalize many Austrian insights. We present a workhorse model with firms on a production network. Macroeconomic variables evolve through the interaction between micro-economic decisions. We use the model to explain why some prices temporarily decrease in response to money injection. We also provide a sketch of other potential applications of our production network model.

https://papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID2794179_code582878.pdf?abstractid=2792400&mirid=1

Toward a New Austrian Macroeconomics

Law and economics is going through a paradigm shift as the influential behavioral school is challenging and remolding its very foundation, i.e., homoeconomicus model. However, neither of the approaches captures the essence of interaction between entrepreneurial heterogeneous agents. The Misesian homoagens approach adequately addresses the deficiencies of the predominant paradigm, opening doors to a far richer legal-economic analysis incorporating real world dynamics of complex market processes.

Conceptions of rationality in law and economics

A basic economic problem is how to coordinate the activities of individuals in a system where information is widely dispersed. This paper compares a centralized and a decentralized system of coordination. The centralized system takes less time than the decentralized system to create coordination. However, the centralized system is less robust than the decentralized system to errors in communication. The relative cost of the two systems of coordination depends on the value of robustness and the value of time. Decentralization is desirable when there is little urgency and when there is great need to prevent system-collapse.

https://papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID2792360_code582878.pdf?abstractid=2600735&mirid=1&type=2

Coordination in Centralized and Decentralized Systems

We generalize Hotelling’s model of spatial competition with more than two firms in a two-dimensional space. Firms choose both price and location to maximize profits. The principle of minimum differentiation does not hold in general. Local duopolies emerge from the interaction between firms. Firms do not spread uniformly across the two-dimensional space, nor do they all charge the same price. Firms in more competitive locations charge lower prices. More product attributes produce more price competition.

Spatial Competition with Interacting Agents

Standard modeling procedures treat the behavior of economic variables using stochastic-determinate equations. Two alternatives to this approach arose in the last quarter of the twentieth century: deterministic nonlinear equation models and agent-based models. The class of deterministic nonlinear equation models produce dynamic behavior without exogenous shocks, but these models are populated by agents incapable of self-organizing. Agent-based models, on the other hand, allow us to study interactions between synthetic actors and the phenomena that emerge from these interactions. In so far as economic phenomena — like prices, firms, nation states and business cycles — are products of human action but not human design, agent-based models are a more productive way forward in formal modeling of complex adaptive systems such as a market economy.

https://papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID2662972_code582878.pdf?abstractid=2600277&mirid=2

Vipin P. Veetil

Papers

Toward a New Austrian Macroeconomics

Conceptions of rationality in law and economics

Coordination in Centralized and Decentralized Systems

Spatial Competition with Interacting Agents

Models of Human Action