Paper: arXiv 2507.03233

Authors: Rem Sadykhov, Geoff Goodell, Philip Treleaven

Abstract

This paper proposes a framework for categorizing economic policies in a form of a tree taxonomy. The purpose of this approach is to construct an exhaustive and standardized list of actions that a governing authority has access to and can change to control an economy. This is advantageous from two perspectives: by having an exhaustive list of tools, it becomes easier to construct “complete” models (i.e., models that take in all empirical data and aim to simulate economic dynamics) of an economy and understand what the assumptions of these models are; and by knowing all available actions, economic strategies can be devised that target specific economic performance metrics with an exhaustive list of policies.

Complexity vs Empirical Score

  • Math Complexity: 1.5/10
  • Empirical Rigor: 2.0/10
  • Quadrant: Philosophers — conceptual discussion, limited math and data

Why this score: The paper provides a qualitative taxonomy of economic policy actions based on an IFRS income statement structural approach. It contains virtually no mathematical derivations, empirical validation, or quantitative backtesting, functioning primarily as a descriptive conceptual framework.

Research Flowchart

  flowchart TD
    A[Goal: Standardize & Categorize Governing Economic Policies] --> B[Data/Inputs: Empirical Economic Actions & Policy Tools]
    B --> C[Methodology: Construct Exhaustive Tree Taxonomy]
    C --> D[Computational Process: Map Policy Actions to Structural Framework]
    D --> E[Outcome 1: Complete Macroeconomic Simulation Models]
    D --> F[Outcome 2: Target Strategies for Economic Metrics]