Herbert Dawid and Michael Neugart

Author Archive | Herbert Dawid and Michael Neugart


Effects of Technological Change and Automation on Industry Structure and (Wage-)Inequality: Insights from a Dynamic Task-Based Model

The advent of artificial intelligence is changing the task allocation of workers and machines in firms’ production processes with potentially wide ranging effects on workers and firms. We develop an agent-based simulation framework to investigate the consequences of different types of automation for industry output, the wage distribution, the labor share, and industry dynamics. It […]

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How to design virus containment polices? A joint analysis of economic and epidemic dynamics under the COVID-19 pandemic

We analyze the impact of different designs of COVID-19 related lockdown policies on economic loss and mortality using a micro-level simulation model, which combines a multi-sectoral closed economy with an epidemic transmission model. In particular, the model captures explicitly the (stochastic) effect of interactions between heterogeneous agents during different economic activities on virus transmissions. The […]

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Distributional Effects of Technological Regime Changes: Hysteresis, Concentration and Inequality Dynamics

In this paper we study the effect of different types of technological regime changes on the evolution of industry concentration and wage inequality. Using a calibrated agent-based macroeconomic framework, the Eurace@Unibi model, we consider scenarios where the new regime is characterized by more frequent respectively more substantial changes in the frontier technology compared to the […]

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Economic and epidemic implications of virus containment policies: insights from agent-based simulations

This paper analyzes the implications of different designs of policies, which aim to contain the diffusion of the SARS-CoV-2 virus, with respect to induced economic loss and virus mortality. An agent-based simulation model is implemented and calibrated with German data, which combines the representation of a simple multi-sectoral closed economy with the explicit incorporation of […]

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R&D Location Strategies

We examine the profitability of different R&D location strategies of firms in a dynamic industry model. Firms engage in imitative and innovative activities in order to improve their products’ quality, which determines their competitiveness. When choosing the set of locations in which to operate firms face a fundamental trade-off: co-locating with competitors’ generates opportunities to […]

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The Role of (De-)Centralized Wage Setting for Industry Dynamics and Economic Growth: An Agent-Based Analysis with the Eurace@Unibi Model

In this paper, we employ the agent-based macroeconomic Eurace@Unibi model to study the economic implications of different degrees of de-centralization in the wage setting. Starting from a baseline scenario, corresponding to a high degree of unionization, in which wages are fully centralized and indexed on economy-wide productivity gains and inflation, we investigate how an increasing […]

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