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How Artificial Intelligence (AI)

Can Help in the Economic Modelling?

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How Artificial Intelligence (AI)

Can Help in the Economic Modelling?
Mario Arturo Ruiz Estrada
Econographication Laboratory
E-mail: mario-ruiz@econographication.com or marioarturoruiz@gmail.com
Website: www.econonographication.com
Tel: +6012-6850293

Abstract

This paper is interested to evaluate how artificial intelligence (AI) can help in the economic
modeling. The fast development of AI, big data, data sciences, neural networks, and graphical
models is opening opportunities to Economists and Academics to a new era under the uses of
these alternative technologies. However, AI can replace the traditional way how we analyze
and solve economic problems. In our case, this research presents an alternative economic
method under the presentation of an application (theoretical framework) that is using AI, big
data, data sciences, neural networks, and Econographicology simultaneously. The new
electronic application is called “The Autonomous Economic Decision Maker Simulator
(AEDM-Simulator). Finally, we introduce the AEDM-Simulator theoretical framework and a
few examples of how to use the AEDM-Simulator to solve any economic issue(s). The AEDM-
Simulator is used as a main database based on the uses of all volumes (39) and issues (250)
from the Journal of Economic Modelling (JEM) published by Elsevier in the last past thirt-nine
years (1984-2023).

Keywords: Economic modelling, Multidimensional graphical modeling, learning machine,

artificial intelligence, AEDM-Simulator, multidimensional coordinate spaces, quantitative
mega-data visualization, Econographicology.
JEL Classification: Y2, Y20

1. A General Introduction to Artificial Intelligence (AI)

Recently, the use of artificial intelligence (AI) in different research fields in pure sciences
or social sciences is more common and faster in our days. AI is offering different choices as
models and applications (machine learning). AI is taking day-to-day more active participation
in our daily life. Hence, Economic modeling cannot escape from it. The main idea of AI is to
translate human thinking and actions into an electronic or mechanical machine to help evaluate
and solve daily problems. We are referring to learning machines. AI is nothing new, factually
exist a long time ago. According to this research, AI is formally institutionalized in the 1940s
under the creation of the first hardware (computer) and software (manual programming) in the
middle of WW2. The application of AI in this precise historical time was to intercept encrypted
code messages from the German Nazi and the Imperial Japanese Navy to prevent an attack on
large cargo ships that supplied goods to the UK from the U.S. in the critical times of WW2.

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We need to mention the great contribution of Alan Turing father of AI and the modern
computer sciences under the construction of a mechanical electric computer called Enigma (a
top British intelligence project) and the first theoretical framework of a manual algorithm. The
main idea to built Enigma was to intercept and decodified encrypted messages from the
Germans and Japanese force's incursions by air, sea, and land in strategic allies’ positions and
civil society targets (Hodges, A., 1983Also, we need to mention this part of our research the
relevant 1956 summer research project on AI at Dartmouth college and 1948 conference at
CALTECH (McKinsey, 2023). These two academic activities open a new era in AI.) However,
we found that the application of AI in Economic modeling presents infinite challenges and
opportunities. We can say the use of programming, software, and applications is the beginning
of AI in Economic modeling. We can mention a few researchers have done AI in Economic
modeling, Economic, and finances such as Acemoglu, Daron, and Pascual Restrepo (2018);
Bickley, S.J., Chan, H.F. & Torgler, B. (2022); Calvano, E., Calzolari, G., Denicolò, V.,
Harrington, J. E., & Pastorello, S. (2020); Cockburn, I. M., Henderson, R., & Stern, S. (2019);
Duarte, P. G., & Giraud, Y., (2020); Dyer-Witheford, N., Kjosen, A., & Steinhoff, J. (2019);
Ghoddusi, H., Creamer, G. G., & Rafizadeh, N. (2019); Gmeiner, R. & Harper, M., (2021). All
these researchers present different views from historical to pure technical views. We can
observe in all these readings about the application of AI in Economic modeling and Economic
can show a large list of potential applications. Finally, this paper divided into five sections are
(i) a general introduction; (ii) an introduction to Economic modeling: definition, classification,
and origins; (iii) the evolution of the economic analytical tools up to the present ; (iv) An
Introduction to the Autonomous Economic Decision Maker Simulator (AEDM-Simulator); (v)
conclusion. Finally, this research paper is interested to present the Autonomous Economic
decision-maker simulator (AEDM-Simulator). It is a new application that is using Artificial
Intelligence (AI), big data, data sciences, neural networks, and Econographicology
simultaneously. The main objective of the AEDM-Simulator is to solve any economic or
financial problem(s). At the same time, the AEDM-Simulator is to help academics and
Economicmakers to find a possible solution(s) or recommendation(s) faster and efficiently.
The AEDM-Simulator is using a large database from the journal of Economic modeling (JEM)
-all volumes and issues- by Elsevier in the last 39 years (1984-2023) for our preliminary
experiment. recently, the use of artificial intelligence (AI) in different research.

2. An Introduction to Economic Modeling: Definition, Classification, Origins

Firstlly, this research is introducing a general definition about Economic modeling. According
to this research “Economic modeling” can be defined as “an academic or empirical research
work, that is supported by the use of different theories as well as quantitative or qualitative
models and techniques, to analytically evaluate the past (causes) and future (effects) of any
Economic on society, anywhere and anytime.” As an integral part of this definition,
“Economic” is defined as “a theoretical or technical instrument that is formulated to solve
specific problems affecting, directly or indirectly, societies across different periods of times
and geographical spaces.” (Ruiz Estrada, 2011).
Our database for AEDM-Simulator is based on a basic classification of twenty
categories, each category is a database storage space (DBxi). Based on the storage of wo
thousand (2,000) papers that were distributed in these twenty database storage spaces (DBxi)
from the Journal of Economic Modeling (JEM) between 1984 and 2023 (39 years), Economic
modeling can be classified into the following twenty (20) categories or database storage spaces
(DBxi):
(i) domestic and international trade Economic modeling (DB1)

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(ii) energy, infrastructure, communications, and transportation Economic modeling

(DB2)
(iii) environmental, agriculture, and natural resources management Economic
modeling (DB3)
(iv) fiscal, government expenditure, and public debt Economic modeling (DB4)
(v) institutional, regulation and negotiation Economic modeling (DB5)
(vi) labor, employment and population Economic modeling (DB6)
(vii) monetary, stock market, exchange rate, finance, banking, insurance, and
investment Economic modeling (DB7)
(viii) production, saving, income, and consumption Economic modeling (DB8)
(ix) technological and R&D Economic modeling (DB9)
(x) welfare and social Economic modeling (DB10)
(xi) economic growth and development Economic modeling (DB11)
(xii) education and human capital development Economic modeling (DB12)
(xiii) military and national security Economic modeling (DB13)
(xiv) gender, culture, discrimination, and racism Economic modeling (DB14)
(xv) natural disasters and food security Economic modeling (DB15)
(xvi) unemployment, inflation, poverty Economic modeling (DB16)
(xvii) tourism and entertoyment Economic modeling (DB17)
(xviii) health Economic modeling (DB18)
(xix) digital Economic, ICT, AI, E-Banking Economic modeling (DB19)
(xx) miscellaneous Economic modelling (DB20).
Morever, the origins of Economic modeling according to Antonio Maria Costa,
Economic modeling was born at the United Nations (UN) at the end of the 1970s when
economists agreed that their profession was not all that useful to people engaged in
macroeconomic management. As a result, they searched for a scientific Economic modeling
research approach that was rooted in empirical validation. Unfortunately, there was none
around. Even worse, there was a general feeling that Economic had become too mathematical,
too abstract, and basically irrelevant. Hence, the Economic research field was being dominated
by mathematicians who only wanted to impress economists with complicated and sophisticated
mathematical models, failing their discipline miserably in the process. Analytically rigorous
Economic modelling emerged as an alternative to rambling books without focus and
application, (Ruiz Estrada and Yap, 2013)
According to Professor Douglas O. Walker, back in the 1950s and 1960s, before Journal
of Economic Modeling existed, development Economic stressed "Big Push" capital
fundamentalist ideas that linked economic growth to investment, which replaced traditional
economic practices with more modern technologies and institutions. Economic models
reflected this orientation. The 1970s saw a period of turmoil, stagnation, growing concerns
about foreign investment and dependency, and the price and income controls. In the 1980s,
Economic highlighted the pre-eminence of markets and the need for structural adjustment in
the face of external imbalances. The decade also witnessed the rise of social development as a
key concern in the formulation of long-term strategies for development. With the collapse of
central planning in the late 1980s and early 1990s, the transition to market-oriented economies
led to major Economic reforms and a quest for better economic governance. Along with the
prominence of human rights and globalization, the first decade of the 21st century has seen
severe financial instability, triggered by the large-scale fiscal and trade imbalances of the major
developed countries.
Throughout the years, JEM has seen a change in its Economic focus. Initially it
published the then-unanimous view that a high rate of economic growth was the secret to

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achieving social development and political stability. Over time, however, this view was
challenged as environmental and poverty issues took center stage in Economic discussions.
Capital fundamentalism is now dead. This change in Economic focus, especially at the
international level, was reflected in the different articles and subjects covered by JEM.
Similarly, we suspect that the balance between internationally-oriented and nationally-oriented
papers as well as the kinds of quantitative techniques used as computers becomes more readily
available and easier to use would change systematically over the years. In 1968, the first
revision of the systems of national account (SNA) was introduced and it slowly but steadily
led to a better, more comprehensive and detailed data series. Other data improvements along a
wide range of subjects may be added, notably on income distribution.
It is pertinent from the comments of the two scholars above that there is consensus on
the origin of Economic modeling. Both authors observe a deep transformation in the analysis,
formulation and orientation of policies across different periods of time and geographical
spaces. Moreover, it is obvious that the use of more practical economic approaches could
facilitate the explanation of various dynamic and complex economic and social phenomenon.
The main idea behind the use of practical economic approaches is to find suitable and
applicable policies that can help to reduce the negative impact of any economic and social
problem(s) in the society by the most efficient and realistic way (Ruiz Estrada and Park, 2018).

3. The Evolution of the Economic Analytical Tools up to the Present

The primary objective of this paper is to evaluate the evolution of the analytical tools
in Economic modeling to observe economic problems during different periods of analysis
qualitative and quantitatively. Therefore, Economic modeling analysis is moving faster from a
qualitative analysis to a pure quantitative analysis. Recently, it is possible to observe the almost
universal uses of mathematical tools such as econometrics, statistical models, and economic
mathematics models in the evaluation of different policies around us.
Hence, at the present, the use of qualitative analysis - i.e. historical and descriptive
analysis based on the use of simple observations and experiences – is much less common than
the use of quantitative analysis – i.e. mathematical and statistical techniques and methods.
Furthermore, more recently, a number of new research fields are incorporated in the Economic
modeling analysis. These include physics, biology, chemistry, education, medicine, military
studies, psychology, sociology, history, engineering, and other pure sciences.
However, Economic modeling analysis always undergoes a constant transformation to
evaluate different dynamic and complex policies. The main reason behind this constant
transformation of the Economic modeling analysis is that economic problems constantly
undergoes simultaneous economic, social, political, and technological transformations. Those
transformations can directly or indirectly affect the Economic modeling analysis and its
possible solutions i.e. Economic modeling - in different societies in different historical periods.
The first broad transformation in Economic modeling analysis under the uses of
historical analysis and political economy (qualitative analysis). Historical analysis is relevant
to understand yhr past events in any society. Subsequently, the historical analysis gives birth
to political economy analysis. In fact, the political economy analysis shows different
approaches and uses a formal theoretical frameworks based on its own concepts, definitions,
ideas, principles, assumptions, rules, models, techniques, and theories respectively.
Political economy analysis plays a central role in Economic modeling analysis up to
the present. Consequently, we can observe a remarkable evolution in the Economic modeling
analysis from the use of political economy analysis to the application economic theory analysis.
The evolution is from an underlying historical, narrative, and descriptive analysis to more
technical analysis using more formal quantitative analysis based on mathematics, statistics, and
econometric modelling.

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We find classify economic theories analysis in the Economic modeling analysis

according to how long they last. Level-1 is universal economic theories analysis that are valid
fo more than hundred years. Examples include Adam Smith (Wealth of Nations), David
Ricardo (Comparative Advantage and Theory of Rent), Jean Say (Law of Markets), Malthus
(Theory of Population), Stuart and Mill (Utilitarian) (Medema and Samuels, 2000). Level-2 is
temporary economic theories that are valid for 25 years or less. The last level, Level-3, consists
of fleeting economic theories which are valid for 5 years or less. (Ruiz Estrada and Park, 2018)
The second broad transformation in Economic modeling analysis starts with Antoine
Augustin Cournot who originates a modern analysis - i.e. applied Economic - in 1838 in his
book entitled “Researches on the Mathematical Principles of the Theory of Wealth.” This book
shows a series of formulas, equations, functions, and mathematical expressions to explain
dynamic and complex economic problems related to market demand, supply, and equilibrium.
Therefore, the mathematical approach introduced by Cournot book is static mathematical
modeling supported by using a series of basic linear equations, in particular demand and
supply, to mathematically understand the cause and effect of market phenomena such as
equilibrium point (Ruiz Estrada and Park, 2018).
The third broad transformation in the e analysEconomic modeling was originated by
Paweł Ciompa (1910), Ragnar Anton Kittil Frisch and his chapter entitled "Propagation
problems and impulse problems in dynamic Economic" in 1933, and Jan Tinbergen (1952) and
his book “On the Theory of Economic Economic.” These three great academics make a
remarkable contribution in the creation, introduction, and development of a new research field
in Economic called econometrics. Econometrics would profoundly revolutionize the Economic
modeling analysis, shifting it from static Economic modeling analysis to dynamic Economic
modeling analysis.
In the 20th century, Economic modeling which revolutionized the Economic analysis
among Economic makers and academics was often based on sophisticated mathematical and
statistical techniques, methods and models. In particular, calculus, trigonometry, geometry and
statistical and forecasting methods were frequently employed by Economic makers and
academics in the Economic modeling modelling. The application of sophisticated
mathematical and statistical techniques, methods, and models can be seen in the development
of the following economic models: The foundations of welfare Economic (Hicks, 1939),
foundations of Economic analysis (Samuelson, 1947), monetary theory and fiscal Economic
(Hansen, 1949), the bargaining problem (Nash, 1950), econometric models and the evidence
of times series analysis and his path-breaking project link that still valid until our days at United
Nations (Klein, 1956), the contribution to the theory of economic growth (Solow, 1956),
economic Economic, and its principles and design (Tinbergen, 1956), the theory of
consumption function (Friedman, 1957), the relationship between unemployment and rate of
change of money wages in the United Kingdom 1861-1957 (Phillips, 1958), input-output
Economic (Leontief, 1966), and the rational expectations and the role of monetary Economic
(Barro, 1976) (Ruiz Estrada, 2013). We also make a distinction between static and dynamic
modeling in the Economic modeling analysis. The static models in the Economic modeling
show unique features such as the use of indicators, indices, basic arithmetic calculations, and
graphs. The main characteristic of static models in the Economic modeling is the application
of partial equilibrium analysis. On the other hand, dynamic models in the Economic modeling
uses more advanced quantitative tools such as econometrics, advanced mathematical models,
and Econophysics. The defining characteristic of dynamic models is the use of general
equilibrium analysis.

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Going forward, we look for possible future evolutions of Economic modeling analysis.
Possible future face three key challenges: (i) Economic modeling simulation; (ii) artificial
Economic modeling intelligence; and (iii) the natural organic Economic modeling intelligence.
Economic modeling simulation uses sophisticated software and computers with a high capacity
of storage and speed. At the same time, these sophisticated machines are able to simultaneously
run a long series of fuzzy stochastic or non-stochastic variables onto infinite equations.
The primary objective of the Economic modeling simulation is to generate different
calibrated scenarios under varying levels of risk to evaluate possible solutions for any economic
problem. The main challenge of Economic modeling simulation is moving from dynamic
Economic modeling to real-time Economic modeling.
The second challenge in Economic modeling analysis is the use of artificial intelligence,
also known as the neural networks approach. Neural networks provide a potentially significant
and valuable tool for Economic modeling analysis. The primary objective of neural networks
is to choose a large database, as well as the most suitable recommendations and suggestions to
solve any socio--economic problem.
These recommendations and suggestions originate from an extensive database of past
experiences of successful theoretical or experimental cases. Therefore, the adaptation of
artificial intelligence to Economic modeling analysis is directly connected to new mathematical
methods and techniques, chaos theory, logical mathematics, Econophysics, neural networks,
advanced computer programming, virtual reality, robotics, faster software development, and
strong hardware support.
The third profound transformation of Economic modeling analysis is natural organic
Economic modeling intelligence. It is based on the interaction of mega-computers, new
software, and applications based on the use of sophisticated and advanced computer languages
and specialized mathematical algorithms, along with artificial intelligence and robotics tools.
In addition, there exists a high probability of applying new multi-dimensional graphical models
together with holograms.
Holograms will be able to show to any researcher complex and dynamic data in real
time. It also gives the researcher a new visual perception of economic problems from a
multidimensional perspective. The researcher can incorporate into the hologram the variables
and equations of any economic problem in the process of observation, analysis, and Economic
modeling.
Finally, we feel that the absence of non-economic variables can considerably increase
the vulnerability of any Economic modeling. Therefore, it suggests that any Economic
modeling should take into consideration a wide range of factors, including unforeseen factors.
These factors include, among others, natural disaster trends, climate change, terrorism, crime
and violence, poverty expansion, religion and beliefs, education system, social events and
phenomena, and social norms. However, it must be assumed that all these factors maintain a
constant quantitative and qualitative transformation in different historical periods of the society
under the application of the Omnia Mobilis assumption (Ruiz Estrada, 2011).

4. An Introduction to the Autonomous Economic Decision Maker Simulator

(AEDM-Simulator)
In this section, we introduce the Autonomous Economic Decision Maker Simulator
(AEDM-Simulator). It is a new application that is using Artificial Intelligence (AI), big
data, neural networks, data sciences, and Econographicology simultaneously. The main
objective of the AEDM-Simulator is to solve any economic issue (s). At the same time, the
AEDM-Simulator can help academics and Economicmakers to find a possible solution(s)

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or recommendation(s) faster and efficiently. The AEDM-Simulator database is based on a

large number of published papers in different volumes and issues from the Journal of
Economic modeling (JEM) by Elsevier in the last past 39 years (1984-2023). This section
is divided into 3 sub-sections: (i) AEDM-Simulator system framework; (ii) AEDM-
Simulator
algorithm framework; (iii) AEDM-Simulator data analysis example.

(i) AEDM-Simulator System Framework

The AEDM-Simulator system framework works under five modules followed by: (a.) AEDM-
Simulator input module (access a window to type your issue in less than 500 words); (b.)
AEDM-Simulator storage database module (we are using around 2,000 papers distributed into
20 different categories of Economic modeling issues -or 20 database storage spaces- you can
refer to the section 2); (c.) AEDM-Simulator analytical evaluator module (refer to the
algorithm); (d.) AEDM-Simulator solutions module (refer to the algorithm); (e.) AEDM-
Simulator final report module (See Figure 1).

Fig. 1: AEDM-Simulator system framework

Front Page

“Please type here your is

sue”

Final Results Page:

Solution

ANSWER

Continue Exit

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(ii) AEDM-Simulator algorithm framework

.The AEDM-Simulator follows five basic phases: The first phase is the input and storage of a
large number of papers (2,000) from Journal of Economic Modeling in each category (or
dabase storage space) constantly; the second phase is the visualization of Multi-Dimensional
graphs in real-time or live; the third phase is to alert of possible failure(s) in different policies
scenarios in the same graphical space; the fourth phase is to search a possible set of solution(s)
(or economic policies) according to the graph position into its Multi-Dimensional physical
space coordinate system respectively and the fifth phase is the final report with a short list of
recommendation(s) or suggestion(s) to solve the irregular or erratic behavior of the Multi-
Dimensional graph.
FIRST PHASE: The Input and Storage of papers from the journal of Economic modeling
The first phase is divided by two sections follow by: Input and Storage Sections.
INPUT SECTION
The first section proposes that in the AEDM-Simulator exist many inputs of information (IXi)
from Journal of Economic Modeling -JEM- (See Expression 1). The inputs of papers from
(JEM) (IXi) can be classified by six input access to 20 database storage spaces, but also the
inputs from JEM information (IXi) can be classified chronological follows by expression 1:
IXi = ƒ (IX1 , IX2 , …, IX20…) ≡ IXi = ƒ (IXi) thus i = [1,2,…,20} (1)
STORAGE SECTION
The second section in the first phase explain about how the inputs of information (IXi) is record
in different Databases Storage Spaces (DBXi) thus i = 1,2,… 20 (See Expression 2).
DBXi = ƒ (DBX1<IX1>, DBX2<IX2>,…, DBx20<IX20>…) (2)
SECOND PHASE: The Visualization of the AEDM-Simulator
The Visualization of AEDM-Simulator in real-time or live (See video 1 and Video 2). It is
based on constant inputs of information (Ixi) in each axis (Xi) respectively from different
Database (DBXi) sources. Always each input of information (Ixi) is interconnected with its axis
(Xi) respectively. AEDM-Simulator graphical always are running in real-time or live all the
time (See Expression 3.)
AEDM-Simulator = (X1: [Ix1], X2:[Ix2] , …, X20:[Ix20]…) (3)

THIRD PHASE: The alert of possible solution in the Economic modeling process
The third phase is given to us an alert of possible solution (See Simulation 1 and Simulation
2). It is depend on the position of the AEDM-Simulator graph. If the information is located in
the parameter was established in our analytical equation Xi = [IXi] = Higher citations, then we
can proceed to select this paper to evaluate our requirement or question to solve a specific
economic problem (See Expression 4.)

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If X1: [IX1], X2:[IX2] , …….…, X20:[IX20]…

then X1: [»Find high citations paper«], X2:[» Find high citations paper «] , …
X20:[»Find high citations paper «] (4)
In fact, if any inputs of any paper high cited from JEM is located in our database storage space
Xi:[IXi] inmeatetly is online in the AEDM-Simulator, then this paper (IXi) will be called “Find
high citations paper”. Therefore, if the AEDM-Simulator can find any paper (Ixi), then AEDM-
Simulator starts to search (☼) for its possible solution (Sxi) immediately. It is according to
expression 5.
Sxi = IX1 ☼ SX1 :IX2 ☼ SX2 : … : IX∞20 ☼ SX20 (5)

FOURTH PHASE: The set of solution(s) (or Economic recommendation)

The fourth phase is divided by two sections follow by Database of final solutions and Solutions.
DATABASE OF FINAL SOLUTIONS
The general database of final solutions are equal to the interconnection (╦) of large number
database (DBXi) and each database storage space has a large number of possible solutions (SXi)
(See Expression 6).
∞ ∞ ∞
DBXi = X1:[ Σ DBX1 <SX1>] ╦ X2:[ Σ DBx2 <Sx2>] ╦ …╦ X20 [ Σ DBX20 <Sx20>] (6)
X1 = 1 X2 = 1 X20 = 1
THE FINAL SOLUTIONS
In the process to choose the final solution (FSXi), it is equal to the multi-connection (╬) of long
list of possible solutions (SXi) (See Expression 7). Each solution (Sxi) depends on the high
citation papers related to a specific economic problem. Hence, the establishment of parameters
in each axis plays an important role in the process to find suitable solution(s) (economic
policies) in the AEDM-Simulator.
FSX1 ═ IX1:1 ∩ SX1:1 → DBx1:1 ╬ FS1:2 ═ IX1:2 ∩ SX1:2 → DBx:1:2 ╬ … ╬ FSX1:∞ ═ IX1:∞ ∩ SX1:∞ →
DBx1: ∞
FSX2 ═ IX:2:1∩ SX2:1 → DBx2:1 ╬ FS2:2 ═ IX:2:2 ∩ SX2:2 → DBx:2:2 ╬…. ╬ FSX2:∞ ═ IX:2: ∞ ∩ SX:2:∞ →
DBx2:∞ . . . . .
. .
FSX20 ═ IX:20:1 ∩ SX20:1 → DBx:20:1 ╬ FS20:2 ═ IX:20:2 ∩ SX20:2 → DBx:20:2 ╬… ╬ FS20:∞ ═ IX20:∞ ∩
SX:20:∞ → DB20:∞ (7)
If FSXi ≡ ƒ (IXi) then each IXi finds its solution into its DBxi respectively.
FIFTH PHASE: The final output

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The final output (FO) is originated from the last partial differentiation (ƒi) from the large list of
papers with high citation solution (Sxi). In fact, the AEDM-Simulator starts to apply partial
differentiation (ƒi) from the first group of papers with high citation solutions until arrive to the
final high citation paper solution. The idea is debugging (◊) until we can arrive to the best
higher cited paper in JEM solution (or best Economic modeling paper) with less risk and less
vulnerable (See Expression 8).
ƒ(SX1) = Sx1 ◊ Sx2 ◊… ◊ Sx∞
ƒ (Sx2)’ = Sx1 ◊ Sx2 ◊… ◊ Sx∞
ƒ (SX3)’’ = Sx1◊ Sx2 ◊… ◊ Sx∞
. = . . .
ƒ(SXi)i = 0 thus i = 1,2…∞ (8)

(iii) AEDM-Simulator Data Analysis Example.

In this section, we present the uses of the AEDM-Simulator. Firstly, we have a
small window to type our questions (See Figure 2). We type the next question: How to
solve inflation and unemployment.

Fig 2. Example of the Input Access Window to AEDM-Simulator

How to solve inflation and unemployment in the case of U.S and EU.

Immediately, the APDM=Simulator started to search in its 20-database storage

Spaces (DBxi) using equations 1 and 2 in Table 1. We are using a total of 2,000 papers
distributed in twenty database storage spaces (DBxi). The AEDM-Simulator uses 3 colors to
remark and read the information. We have green color for important keywords, yellow for
secondary keywords, and blue light for complementary keywords in our searching system.
Following our example, we have two main keywords in green color: inflation and
unemployment. Additionally, we have one secondary keyword in yellow color: U.S. Finally,
we have one word in blue light with a complementary keyword: EU. Subsequently, we apply
equations 2 and 3. We got in the first set of main references offered by AEDM-Simulator is
DB16, and the second set of references by AEDM-Simulator is DB1, DB4, and DB7. Finally,
the supplementary references suggested by AEDM-Simulator are DB11 and DB20 respectively
(See Table 1). At the same time, we show a multidimensional graphical simulator (see
Simulation 1) to have a better idea about how AEDM-Simulator works in the searching process

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of different database storage spaces (DBxi => i = {1, 2, 3, 4, 5, 6, 7, 8, 9,

10,11,12,13,14,15,16,17,18,19, 20}) according to the keyword(s) are selected from our input
window box.

Table 1: The Twenty Database Storage Spaces (DBxi) in the AEDM-Simulator

PAPER
S %
DB1 The Domestic and International Trade Pol. Mod. 300 12%
DB2 The Energy, Infra., Commu., and Trans. Pol. Mod. 120 5%
DB3 The Environmental, Agriculture, and Natural Resources Pol. Mod. 120 5%
DB4 The Fiscal, Governement Expenditure, and Public Debt Pol. Mod. 180 7%
DB5 The Institutional, regulation, and Negotiation Pol. Mod. 50 2%
The Labor, employment, and Population Economic
DB6 odeling 100 4%
The Mon.,Stock Market, Ex-Rate, Fin., bank, ins., and Inv.Pol
DB7 .Mod. 800 32%
The Production, Savings, Income and Consumption Economic
DB8 Modeling 240 9%
The Technological and R&D Economic
DB9 odeling 50 2%
The Welfare and Social Economic
DB10 Modeling 30 1%
The Economic Growth and Development Economic
DB11 odeling 260 10%
The Education and Human Capital Development Economic
DB12 Modeling 75 3%
DB13 The Military and National Security Economic Modeling 30 1%
DB14 The Gender, Culture, Discrimination, Racism Economic Modeling 10 0%
The Natural Disasters and Food Security Economic
DB15 odeling 10 0%
The Unemployment, Inflation, Poverty Economic
DB16 Modeling 40 2%
Tourism and Entertainment
DB17 P.M. 2 0%
DB18 Health Economic Modeling 35 1%
DB19 Digital Economic, ICT, AI, E-pay., Economic Modeling 3 0%
DB20 The Miscellaneous Economic Modeling 73 3%
100
Total 2,000 %
Source: Journal of Economic Modeling, ScienceDirect, Elsevier

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Simulation 1. Graphical Simulation of the Database Searching in the APDM=Simulator

Note: Please click on top of the figure Source: Database from Table 1 and Mathematica Wolfram V. 12

The next stage of the AEDM-Simulator is searching a good information from different volumes
and issues from the Journal of Economic Modeling (JEM) published by Elsevier. To
consolidate a list of papers with high relation to the topic according to the number of
downloaded times and citations. It is according to a large database of 2,000 papers (data
resources) distributed in 39 volumes and 250 issues (see Table 2). This part of the AEDM-
Simulator is using equation 3, 5, 6, 7, 8 to consolidate our final recommendation(s) with a
precision of 85%. We are using permutations, fuzzy, and random searching to relocate the
perfect and clear answer. In this case, we suggest to present a complex and dynamic decision
maker graphical simulator (See Simulation 2). We can have a better precision to locate and
organize our information for our final output. According to AEDM-Simulator we got a total of
135 papers (sources) from 25 volumes and 75 issues. Finally. We can present the final output
table in Figure 3.

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Fig. 3. The Final Output from AEDM-Simulator

According to our preliminary results from the AEDM-Simulator, U.S. needs to control the
interest rate (moderate), low taxation (keep lower taxes), and never exceed its M1 and M2 in
the nominal market. At the same time, AEDM-Simulator strongly recommend the control of
prices and open more opportunities to generate jobs in the public sector to compasate the large
unwemployment in the labour market in the short run.
Continue Exit

Table 2. AEDM-Simulator Solutions database Storage Space.

VOL YEAR 1 2 3 4 5 6 7 8 9 SUM

1 1984 9 12 10 12 0 0 0 0 0 43
2 1985 9 8 7 11 0 0 0 0 0 35
3 1986 7 7 7 8 0 0 0 0 0 29
4 1987 9 6 6 12 0 0 0 0 0 33
5 1988 8 7 8 8 0 0 0 0 0 31
6 1989 7 5 8 11 0 0 0 0 0 31
7 1990 8 7 20 9 0 0 0 0 0 44
8 1991 8 9 9 9 0 0 0 0 0 35
9 1992 6 8 7 9 0 0 0 0 0 30
10 1993 11 7 5 7 7 0 0 0 0 37
11 1994 10 4 4 7 6 6 0 0 0 37
12 1995 11 6 4 7 6 4 0 0 0 38
13 1996 7 4 5 4 7 6 0 0 0 33
14 1997 9 4 6 6 7 6 0 0 0 38
15 1998 5 7 5 5 7 7 0 0 0 36
16 1999 8 6 7 8 9 6 6 0 0 50
17 2000 6 5 5 3 12 6 7 0 0 44
18 2001 6 6 9 9 9 11 8 7 0 65
19 2002 7 9 6 7 10 5 8 4 0 56
20 2003 13 12 10 12 7 11 6 6 0 77
21 2004 18 11 8 7 12 10 10 13 0 89
22 2005 9 9 10 11 11 11 12 11 8 92
23 2006 9 13 11 15 8 11 11 10 8 96
24 2007 10 14 13 15 12 15 0 0 0 79
25 2008 16 19 11 14 15 15 0 0 0 90
26 2009 11 19 16 14 15 18 0 0 0 93

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27 2010 9 9 9 12 11 11 0 0 0 61
28 2011 9 11 13 11 10 11 0 0 0 65
29 2012 9 11 11 12 12 11 0 0 0 66
30 2013 13 12 12 12 12 15 0 0 0 76
31 2014 11 13 9 12 12 15 9 0 0 81
32 2015 9 14 10 10 11 11 0 0 0 65
33 2016 12 12 12 12 12 12 0 0 0 72
34 2017 11 12 12 12 12 12 0 0 0 71
35 2018 12 12 12 10 10 13 0 0 0' 69
36 2019 13 11 9 13 13 11 0 0 0 70
37 2020 13 12 13 13 14 13 0 0 0 78
38 2021 13 13 13 11 13 14 0 0 0 77
39 2022 12 14 12 12 12 12 0 0 0 74
40 2023 13 13 12 12 13 12 0 0 0 75
TOTAL 2000
Source: Journal of Economic Modeling, ScienceDirect, Elsevier

Simulation 2. Graphical Simulator of the Solutions Database Storage Spaces

Note: Please click on top of the figure

Source: Database from Table 2 and Mathematica Wolfram V. 12

5. Conclusions
The artificial intelligences (AI) are only a mechanical and logical order of information that we
save in a database. Later, we evaluate the large database according to our parameters and logical
decisions to allocate and search common words or sentences (qualitative data) or amounts and
dates (quantitative data) that follow a certain logic and order according to our instructions.
Subsequently, we get a list of possible results under a short or long description or graphically
to have a better idea of possible results and possible recommendations partially.According to

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this research, The AI can help the Economic modeling process in the calculation part and a
partial analysis of any economic problem in this moment. we can observe that in the Economic
modeling in the present or future always can present so much limitations such as the missing
of creativity, ideas, irrationality, inspiration, sensibility, feelings, conciseness, imagination, and
humanity. We can say that AI needs more time to be included in the Economic modeling
approximately 50 years from now. We can see AI can play an important role only in the
calculation part and data analysis. But never in the conclussios, taking decisions, and
recommendations.
Our study makes it abundantly clear that AI in Economic modeling can open a new research
field to academics, Economic makers, and social scientists in the study of complex and
dynamic economic problems that can affect our society anytime and anywhere without borders.
Our conclusion is drawn from an intensive review and analysis of 2,000 articles published
during the last 39 years (1984-2023) in the Journal of Economic Modeling, a journal dedicated
to the field of Economic modeling. Economic modeling is constantly evolving and changing,
at remarkable speed, in line with the rapidly changing social, economic, and political realities
of the world. Economic modelling is continuously enriched and enhanced by uses of new
research approaches and exploration of new research areas, one of the AI. Finally, the AI in
the Economic modeling is a powerful analytical tool that adapts any technique, methodology,
method, and research approach from a wide range of disciplines – e.g. AI, Neural Networks,
big data, learning machine, data sciences, Econographicology - to rigorously explain the
complex economic problems that affects different social groups in different geographical areas
during different historical episodes. AI will be sure to make a central contribution to this vital
endeavour in the Economic modeling.

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