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behavioural-macro-friction

https://github.com/athena-biju/behavioural-macro-friction

Science Score: 44.0%

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Repository

Basic Info
  • Host: GitHub
  • Owner: athena-biju
  • License: mit
  • Language: Jupyter Notebook
  • Default Branch: main
  • Size: 155 KB
Statistics
  • Stars: 0
  • Watchers: 1
  • Forks: 0
  • Open Issues: 0
  • Releases: 0
Created 11 months ago · Last pushed 8 months ago
Metadata Files
Readme License Citation

README.md

The Hidden Friction: ψ as a Behavioural Macroeconomic Distortion

This repository introduces ψ, a norm-induced wage suppression parameter representing post-marital labor market frictions unrelated to fertility. We embed ψ into a dynamic Overlapping Generations (OLG) macroeconomic model to simulate growth, welfare, and fiscal implications.

## Core Contributions - Definition and empirical estimation of ψ across countries. - Structural integration of ψ into general equilibrium simulations. - Simulation of GDP losses, labor force participation shifts, and fiscal drag. - Foundational framing of "behavioural macrofrictions".

## Repository Structure - /code/: Jupyter notebooks for empirical and simulation logic. - /data/: Placeholder for PHF, SHP, SOEP, WVS, etc. (access instructions only). - /docs/: Theoretical notes on embedding ψ into macroeconomic systems.

Setup

  1. Install Miniconda or Anaconda.
  2. Create and activate the environment with the jupyterlab package:

bash conda create -n macrofriction python=3.11 jupyterlab conda activate macrofriction 3. Verify the environment and JupyterLab installation:

bash conda env list | grep macrofriction jupyter lab --version

Running the Notebooks

Launch JupyterLab:

bash jupyter lab

Run the notebooks sequentially:

  • 01-macro-model-structure.ipynb – establishes the baseline model structure.
  • 02-psi-output-loss-simulation.ipynb – simulates output losses from ψ.
  • 03-psi-dynamic-path.ipynb – traces the dynamic adjustment path.
  • 04-lfp-welfare-simulation.ipynb – evaluates labor force and welfare shifts.
  • 05-policy-simulation-scenarios.ipynb – explores policy scenarios.

## Citation Athena Biju (2025). The Hidden Friction: Marriage, Gender Norms, and the Macroeconomics of Labor Market Divergence. Jacobs University Bremen.

## License MIT License (for code), CC-BY 4.0 (for paper).

## Disclosure AI-assisted for select technical implementations. All theoretical and conceptual content by Athena Biju.

## Development Setup After cloning the repository, create a virtual environment and install the minimal dependencies:

bash python3 -m venv .venv source .venv/bin/activate pip install pandas pytest

Run the test suite to ensure the environment is correctly configured:

bash pytest

Owner

  • Name: Athena Biju
  • Login: athena-biju
  • Kind: user

Global Economics and Management Student at Jacobs University Bremen

Citation (CITATION.cff) 

cff-version: 1.2.0
message: "If you use this work, please cite it as below."
title: "The Hidden Friction: ψ as a Behavioural Macroeconomic Distortion"
authors:
  - given-names: Athena
    family-names: Biju
year: 2025

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