Dynamics of economic unions: an agent-based, game-theoretic model to investigate the economic and social drivers of withdrawals

Dr. Carlos Gracia-Lázaro (University of Zaragoza)

On October 7th, 2021 at 05:00 pm Dr. Carlos Gracia-Lázaro of the Institute for Biocomputation and Physics of Complex Systems (BIFI) of the University of Zaragoza, will hold an online seminar titled “Dynamics of economic unions: an agent-based, game-theoretic model to investigate the economic and social drivers of withdrawals“.

 

Economic unions are international agreements oriented to increase economic efficiency and establishing political and cultural ties between the member countries. In this talk, mimicking the dynamics of economic unions, we propose an agent-based model to study the determinant factors driving withdrawals from a consolidated economic union between countries. We show that both Union and local taxes promote the exits, whereas customs fees out of the Union boost cohesion. Furthermore, heterogeneity in both business conditions and wealth distribution promotes withdrawals, while countries’ size diversity does not have a significant effect on them. We also deep into the individual causes that lead to dissatisfaction and, ultimately, to exits. We found that, for low Union taxes, the wealth inequality within the country is the leading cause of anti-Union opinion spreading. Conversely, for high Union taxes, the country’s performance turns to be the main driving force, resulting in a risk of wealthier countries leaving the Union. These findings will be helpful for the design of economic policies and effective informative campaigns.

 

The event will be held online by Microsoft Teams

 

Short Bio

Dr. Carlos Gracia-Lázaro is a member of the Institute for Biocomputation and Physics of Complex Systems (BIFI) of the University of Zaragoza, where he works as a research fellow at COSNET Lab. His research interests include evolutionary game theory, social dynamics, complex networks, and theoretical biology. His recent projects are related to applications of Physics and Mathematics to Social Sciences and Biology, aimed at uncovering the mechanisms underlying social and economic behavior, including theoretical and experimental studies about cooperation and interaction in human communities.

 


Data / Ora
Date(s) - 07/10/2021
17:00 -18:00

Contatti
Prof. Fabio Dercole

Luogo
This event will be held online.