2021
DOI: 10.48550/arxiv.2108.02904
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Building a Foundation for Data-Driven, Interpretable, and Robust Policy Design using the AI Economist

Abstract: Optimizing economic and public policy is critical to address socioeconomic issues and trade-offs, e.g., improving equality, productivity, or wellness, and poses a complex mechanism design problem. A policy designer needs to consider multiple objectives, policy levers, and behavioral responses from strategic actors who optimize for their individual objectives. Moreover, real-world policies should be explainable and robust to simulation-toreality gaps, e.g., due to calibration issues. Existing approaches are oft… Show more

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Cited by 6 publications
(7 citation statements)
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References 26 publications
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“…Based on the present discussion, future work might consider mechanism design using agents that are themselves engaged in active inference (e.g., within a general equilibrium macroeconomic model that is being utilized to understand a country's SWB (Hill et al, 2021)). Parallel work in the RL literature has developed similar large-scale simulations to develop dynamic taxation and subsidy policies that consider multiple objectives, policy levers, and behavioral responses from strategic actors that optimize for their individual objectives (Trott et al, 2021). A taxation policy from such reinforcement learning simulations can even outperform optimal static policies in terms of productivity and equity (Zheng et al, 2021).…”
Section: Target Outcomes Of Interventionsmentioning
confidence: 99%
“…Based on the present discussion, future work might consider mechanism design using agents that are themselves engaged in active inference (e.g., within a general equilibrium macroeconomic model that is being utilized to understand a country's SWB (Hill et al, 2021)). Parallel work in the RL literature has developed similar large-scale simulations to develop dynamic taxation and subsidy policies that consider multiple objectives, policy levers, and behavioral responses from strategic actors that optimize for their individual objectives (Trott et al, 2021). A taxation policy from such reinforcement learning simulations can even outperform optimal static policies in terms of productivity and equity (Zheng et al, 2021).…”
Section: Target Outcomes Of Interventionsmentioning
confidence: 99%
“…The COVID environment, developed by Kompella et al (2020), simulates a population using the SEIR model of individual infection dynamics. The RL policymaker adjusts the severity of social distancing regulations while balancing economic health (better with lower regulations) and public health (better with higher regulations), similar in spirit to Trott et al (2021). The population attributes (proportion of adults, number of hospitals) and infection dynamics (random testing rate, infection rate) are based on data from Austin, Texas.…”
Section: Environmentsmentioning
confidence: 99%
“…Reward hacking, or the gaming of misspecified reward functions by RL agents, has appeared in a variety of contexts, such as game playing (Ibarz et al, 2018), text summarization (Paulus et al, 2018), and autonomous driving (Knox et al, 2021). These examples show that better algorithms and models are not enough; for human-centered applications such as healthcare (Yu et al, 2019), economics (Trott et al, 2021) and robotics (Kober et al, 2013), RL algorithms must be safe and aligned with human objectives (Bommasani et al, 2021).…”
Section: Introductionmentioning
confidence: 99%
“…Deep reinforcement learning (RL) is a powerful learning framework to train AI agents. RL agents have beaten humans at several strategy games (1,2), trained robotic arms (3), and been used to design economic policies (4,5).…”
Section: Introductionmentioning
confidence: 99%