Economic World Models

Building AI-system blueprints for agentic economies, policy sandboxes, and self-correcting economic twins.

Project
AI agents Economic world models Agentic economies Policy simulation Sim-to-real twins
Research team
Economic World Models compare physical-world transitions with agent-generated economic-world transitions

Economic decisions are usually made in the real world first and evaluated afterward. Economic World Models invert that workflow: they ask how we can build computable economies where heterogeneous agents observe, reason, act, interact, adapt, and co-evolve with markets and institutions before policies, strategies, or AI agents are deployed at scale.

The project develops an implementation-oriented systems blueprint for EconWM systems. It connects economic discipline with AI-system design, treating an economy as a generative engine whose state transitions are produced from inside the modeled world. Agents form beliefs, choose actions, alter the aggregate state, and then respond to the world they helped create.

The central goal is to make economic worlds buildable, testable, and alignable: useful as policy sandboxes for human decision-makers, training environments for economic agents, planning engines for interventions, and safety testbeds for emergent risks such as manipulation, collusion, instability, and cascading failure.

What The Project Builds

Agentic economic sandboxes

Simulation environments where households, firms, banks, investors, regulators, and AI agents can interact under explicit objectives, constraints, information, and rules.

A six-level capability ladder

A taxonomy from fixed rule-based agent worlds to adaptive agents, LLM-based autonomous agents, self-evolving agents, evolving institutions, and sim-to-real economic twins.

Alignment and evaluation loops

Mechanisms for comparing simulated outcomes with real economic evidence, diagnosing deviations, and correcting agents, mechanisms, and transition dynamics over time.

Six capability levels of Economic World Model systems

Systems Blueprint

The proposed EconWM architecture has four connected layers: economic agents, economic environments, agent-environment co-evolution, and real-world alignment. This makes the project more than a survey of AI agents in economics: it is a build plan for economic digital twins that can reason, simulate, learn, and stay empirically grounded.

Core components of an Economic World Model

Research Team

The work brings together researchers across Shenzhen Loop Area Institute, CUHK-Shenzhen School of Data Science, the University of Hong Kong, and Nanyang Technological University.

Featured Work

From Papers to Systems

The Economic World Models page is the umbrella. Under it, TwinMarket provides a concrete financial market sandbox, MicroVerse explores scientific micro-world simulation, and the curated Awesome Econ World Models repository keeps the paper trail organized. Together they turn the idea of "agents in an environment" into a program about evolving worlds: social worlds, market worlds, biological worlds, and eventually policy-facing digital twins.