ENGS 88 Honors Thesis (AB Students)
Degree Program
A.B.
Year of Graduation
2019
Faculty Advisor
Eugene Santos Jr.
Document Type
Thesis (Senior Honors)
Publication Date
Spring 5-29-2019
Abstract
In this paper, we propose a network-based model to attempt to connect modern macroeconomic theory with real world economic observations and trends. We find that by extending macroeconomic theory with credit leveraging/deleveraging thresholds, we are able to explain economic cycles in addition to long-term growth. Furthermore, we specifically explore the growth-inflation view of the macro economy as a basis for optimal portfolio construction and efficient asset trading. Connecting our network-based macroeconomic model and our optimal portfolio construction algorithm, we create a novel macroeconomic asset-trading framework.
Dartmouth Digital Commons Citation
Yang, Richard, "Modeling the Economic Machine Using Bayesian Inference and Statistical Networks, and Optimal Portfolio Construction Using Operations Research" (2019). ENGS 88 Honors Thesis (AB Students). 3.
https://digitalcommons.dartmouth.edu/engs88/3
Included in
Finance Commons, Macroeconomics Commons, Operational Research Commons, Risk Analysis Commons, Systems Engineering Commons