Macroeconomic Model

Macroeconomic models aim to understand and predict the behavior of entire economies, focusing on aggregate variables like consumption, investment, and inflation. Current research emphasizes incorporating agent heterogeneity and complex interactions within these models, often using multi-agent simulations with reinforcement learning algorithms or integrating data from social media to capture narrative influences on economic trends. This work is significant for improving the accuracy and realism of macroeconomic forecasts and informing policy decisions related to issues such as tax credit distribution and the impact of technological advancements like large language models on labor markets.