Research Center

Sustainable Economic Dynamics &AI Support

AI-supported economic research for resilience, sustainability, and policy design. Bridging dynamic economics, complex systems, and artificial intelligence for real-world decision-making.

AI + Macroeconomics Complex Systems Climate & Sustainability Policy Tools
Research Pillars
IV
Integrated research programs spanning AI methods, risk monitoring, distributional dynamics & transition pathways
Policy Analytics
Real-time monitoring & nowcasting
Focus
MPC · ML · RL
Control & learning methods
About the Center

Research at the Intersection of Economics, AI & Complexity

SEDAI is dedicated to advancing sustainability, welfare, and resilience in economies confronting the defining challenges of our era—climate change, external shocks, rapid technological transformation, and widening distributional disparities.

Operating at the nexus of dynamic economic theory, complex systems analysis, and artificial intelligence, the Center translates rigorous analysis into practical, policy-relevant tools for reshaping innovation pathways, improving market outcomes, and reducing climate-related risks.

Dynamic Economic Theory

Nonlinear macro-finance, business cycle dynamics, and structural change

Complex Systems

Multi-regime models, feedback loops, and tipping-point analysis

Artificial Intelligence

MPC, ML, RL, and AMPL for estimation, control & forecasting

Policy Relevance

Deployable instruments for evidence-based economic governance

Core Objectives

Two Closely Linked Research Agendas

The Center pursues complementary objectives that together form a comprehensive program for AI-supported economic research.

Understanding the Macroeconomic Impacts of AI

Examining how AI-supported technologies shape output, productivity, innovation, labor market transitions, financial dynamics, healthcare, income and wealth inequality, and climate performance.

Embedding AI Methodologies into Economic Research & Policy Design

Integrating MPC, ML, RL, and AMPL into forecasting, regime-change detection, scenario evaluation, multi-period Nash games, risk management, and policy optimization—particularly in nonlinear, heterogeneous settings.

Bridging Fragmentation

Connecting Three Worlds of Analysis

Overcoming the persistent disconnect between AI engineering, short-term financial decision-making, and long-horizon policy design.

I

AI Engineering

Modern computational methods—machine learning, reinforcement learning, and control theory—brought to bear on economic questions with causal interpretability.

II

Financial Decision-Making

Overcoming costly short-termism in economic and financial decisions through finite-horizon frameworks and multi-phase optimization.

III

Long-Horizon Policy Design

Intertemporal, multi-goal policy frameworks combining the discipline of economic structure with the adaptability of contemporary AI tools.

Mission & Strategic Context

Operating Across Two Analytical Levels

Level A

AI-Supported Macroeconomics

Development of AI/ML, Model Predictive Control, and AMPL methodologies to enhance macroeconomic modeling, forecasting, and policy simulation—specifically regarding nonlinear dynamics and real-time decision-making in complex environments.

Level B

Macroeconomic Impacts of AI

Empirical analysis of AI adoption and its effects on labor markets, financial markets, the environment, innovation, productivity, wage distributions, inflation, and industry and firm-level competition across advanced economies.

European Strategic Context

Research Shaped by Regional Priorities

The Center's establishment in Europe is driven by specific analytical and regulatory requirements of the region.

Economic Trends & Cycles

Exploring economically relevant policies, emerging trends, and business cycle phases across the European region.

Innovation & Productivity

Leveraging AI adoption to explore economic innovation dynamics, ecological transition, and labor market impacts.

Labor & Equity

Generating causal evidence on AI-driven inequality, employment volatility, labor shifts, and demographic transitions.

Policy & Regulation

Building on Europe's regulatory framework for responsible, evidence-based AI deployment addressing vulnerable populations and skill shifts.

Research Pillars

Four Pillars of Applied Research

Integrated research programs producing technical papers, open-source toolkits, dashboards, and policy-grade frameworks.

I

Complex Dynamic Systems & Structural AI

ObjectiveModeling frameworks combining economic theory with supervised and reinforcement learning
FocusHybrid structural–ML models, Deep RL for fiscal/climate policy, Universal Differential Equations
OutputsTechnical papers, open-source toolkits, benchmark environments
II

Predictive Analytics, Thresholds & Risk Monitoring

ObjectivePolicy-grade systems for real-time economic and financial monitoring
FocusHigh-frequency nowcasting, tail-risk evaluation, uncertainty quantification
OutputsReproducible interconnectivity and early-warning dashboards
III

Distributional & Firm Dynamics

ObjectiveQuantify economy-wide effects of AI diffusion
FocusLabor and wealth disparities, market concentration, productivity dispersion
OutputsMeasurement frameworks and empirical impact assessments
IV

Transition Dynamics & Long-Run Growth

ObjectiveAI-supported variables in long-term climate and industrial strategy models
FocusInnovation channels, green industrial strategy, public bond-financed investment effects
OutputsTransition scenarios and frameworks for long-run public debt control
Applied Operations

Policy-Oriented Deployment

Co-production with institutional partners ensuring technical alignment and deployment viability across macroeconomic, sectoral, and industry policy domains.

Impact Assessments

Comprehensive evaluation of policy effects across economic sectors and populations

Decision-Support Prototypes

Sectoral change analysis for expansion, contraction, and inflationary effects of decarbonization

Stress Testing

AI-supported macro and sectoral stress testing for resilience and scenario planning

Policy Applications

Macroeconomic and sector-level instruments for climate, labor, and financial policy

Target Partners

Ministries of Finance and Labor
Central Banks
International Financial Institutions
Industrial Stakeholders
Leadership

Founding Directors

The Center is led by researchers with deep expertise in macroeconomic dynamics, financial instability, climate economics, and computational policy design.

WS

Willi Semmler

Co-Founder & Director

Professor Emeritus, The New School for Social Research and Bielefeld University. Research spans macro-financial dynamics, industrial competition, climate economics, and computational policy design.

TK

Tato Khundadze

Co-Founder

Researcher in macroeconomic dynamics and AI-supported policy analysis, contributing to the Center's integrated modeling and applied research program.

PC

Pu Chen

Co-Founder

Ph.D., Senior Lecturer at Curtin University, Australia. Specialist in complex systems empirics and econometric validation through time series and panel methods.

Outreach & Cooperation

Institutional Ecosystem

Maintaining visibility and impact through publications, convenings, and a broad international network of collaborating institutions.

Technical Outputs

Peer-reviewed publications, technical policy briefs, standardized open datasets and codebases.

Annual Reporting

Publications on Economic Dynamics and AI; comprehensive annual research reports.

Convening Activities

Flagship conferences, workshops, technical seminars, and specialized training for researchers and policymakers.

Advisory Board

Lars Grüne (Bayreuth), Helmut Maurer (Münster), Giovanni di Bartolomeo (La Sapienza), Stefan Mittnik (LMU), Timo Teräsvirta (Aarhus)

To be confirmed

Team Members

T. Khundadze, P. Chen, F. Koohi-Kamali, T. Bonen, E. Ernst, L. Mateane, S. Issa, C. Proaño, B. Fard, J. Bastos Neves, O. Valle Codina, B. Lucas, U. Nyambuu, M. Toure

To be confirmed

Cooperating Institutions

IIASA, City University NY, Bamberg University, FMND (Paris/Lille), Milano group, VAW, MPI, Geneva Lab, La Sapienza, Bielefeld University, Oxford University, UCL

To be confirmed
Programs & Events

Upcoming Activities

Bringing together researchers, practitioners, and policymakers through high-impact events and training programs.

Flagship

Annual Conference on Economic Dynamics & AI

The Center's flagship convening, gathering leading researchers and policymakers to present cutting-edge work in AI-supported economics.

Autumn 2026 Europe
Series

Policy Workshop Series

Hands-on workshops with institutional partners focused on deploying AI-supported tools for sectoral analysis and policy evaluation.

Quarterly Hybrid
Training

Research Seminar Program

Advanced technical seminars for PhD-level researchers on nonlinear modeling, MPC, reinforcement learning, and structural estimation.

Monthly Online
Collaborate

Join the Research Frontier

We welcome collaboration from researchers, policymakers, institutions, and partners who share our commitment to rigorous, AI-supported economic research for a more resilient and equitable future.