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Department of Finance

Workshop on AI and New Methods in Macroeconomics and Trade 2025

Organized by Prof. Yucheng Yang (UZH) and Prof. Xiaodong Zhu (HKU)

The Workshop on AI and New Methods in Macroeconomics and Trade is organized by Prof. Yucheng Yang from the Department of Finance and Prof. Xiaodong Zhu from the Hong Kong Business School. 

The event was held at the University of Zurich and brought together leading researchers applying cutting-edge computational and AI-based tools to address pressing economic challenges. Presentations illustrated how methods such as deep learning, combinatorial optimization, and large language models are reshaping the frontier of macroeconomic research. Topics included the design of tariff policies in the context of geopolitical tensions, the macroeconomic impact of sanctions, and monetary policy transmission under the zero lower bound. Other contributions examined the welfare effects of bankruptcy regulation, the macroeconomic implications of unemployment insurance extensions, and the use of machine learning to compute constrained optimal carbon tax rules. The program featured novel approaches to analyzing state-dependent risk premium dynamics and the economic consequences of technology wars.

The workshop underscored the promise of modern AI methods in advancing our understanding of complex questions in macroeconomics and international trade.

 

Program

Date: Saturday, 12 April 2025
Time: 08:45 - 18:30
Location: University of Zurich, Department of Finance

08:45

Arrival and Registration

09:00 Chair: Prof. Yucheng Yang (UZH)
  • Costas Arkolakis (Yale): Combinatorial Discrete Choice: A Quantitative Model of Multinational Location Decisions
09:50
  • Xiaodong Zhu (HKU): Optimal Trade and Industrial Policies in the Global Economy: A Deep Learning Framework
10:40

Coffee Break

11:00
  • Felix Kübler (UZH) and Simon Scheidegger (HEC Lausanne): Using Machine Learning to compute all constrained Pareto optimal carbon tax rules in a stochastic OLG model
11:50

Leonardo Melosi (Warwick): Estimating Nonlinear Heterogeneous Agent Models with Neural Networks

12:40

Lunch and Group Photo

14:10

Chair: Prof. Xiaodong Zhu (HKU)

  • Hanbaek Lee (Cambridge): Global Nonlinear Solutions in the Sequence Space and the Generalized Transition Function

15:00

  • Andreas Mueller (UZH): Macroeconomic Effects of UI Extensions at Short and Long Durations

15:50

Coffee Break

16:10

  • Sun Kyoung Lee (Michigan): Broke, but not out of luck: Bankruptcy regulation and economic activity

17:00

  • Ruiqi Sun (Toronto): Blocking the Giants: Theory and Evidence from the GFW

18:30

Conference Dinner (by invitation)

Sponsors

The workshop will be sponsored by the Hong Kong Business School (HKU), the Swiss National Science Foundation (SNSF) and the University of Zurich (UZH).

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