Fractal Macroeconomics  

Marco Ranaldi

The paper proposes a novel framework for macroeconomics using fractal mathematics. Macroeconomic models have the objective of simplifying complex economic dynamics. HANK (Heterogeneous Agent New Keynesian) models, for instance, encapsulate a world of utility-maximising individuals and profit-oriented firms, each with distinct characteristics, whereas Agent-Based Models (ABMs) generate emergent behaviours from the interactions of independent agents. Differently from existing frameworks, fractal macroeconomics seeks to address the following questions: Can macroeconomic self-similarity be observed across different partitions, such as the population, to streamline complexity? Is it possible to identify a stable equilibrium among economic variables at varying scales? And, crucially, can we construct a macroeconomic framework that integrates disparate stylised facts discerned at different scales? The present framework focuses on economic self-similarity to distil complexity and forge links between macro- and microeconomic phenomena. By incorporating cycles and perspectives into the very concept of time, the ultimate goal is to discern macroeconomic equilibria or disequilibria within a fractal paradigm and to correlate disparate economic facts across multiple scales.

Social return on Investments for arts and creative industries: valuing social impact

Chiara Amini

In recent time public arts funders and arts organizations have increasingly come under pressure to show their economic and wider societal benefits.  Arts and culture have a complex impact on individual life and society. In spite of extensive discussion on the value of culture and arts,  there is still considerable research that needs to be carried out to articulate and show these benefits.  We present the preliminary results from a Knowledge Exchange project between UCL and Creative United, an arts-based organisation funded by the Arts council. We are assessing the social and well-being impact of  supporting access to arts and music as well as providing training to creative entrepreneurs in the UK. Our main approach is a Social return on Investment methodology to assess impact of key six social  outcomes. The analysis relies on quantitative as well as qualitative evidence. We also investigated the impact of the programme on participants well-being using the UCL Creative Wellbeing measures, a framework designed to assess levels of psychological wellbeing arising from participation in creative activities.