Eurosystem Governing Council Decision Model

This repository presents our project that focuses on modeling the discussion and voting mechanism of the Governing Council, the decision-making body of the Eurosystem. Our model delves into the negotiation process preceding interest rate votes, incorporating two key assumptions. Firstly, we divide agents into two subgroups - hawks and doves. Secondly, we assume homogeneous preferences within each group, effectively treating them as distinct agents. We leverage the concepts of Nash equilibrium and Rationalizability to analyze this model.

Repository Structure

/
├── Code_for_numerical_computations/
│   ├── plot.py
│   ├── rationalizability.py
├── Latex_output/
├── README.md

Code_for_numerical_computations

This directory contains the code necessary for numerical computations. It includes:

• plot.py: Python script for generating plots.
• rationalizability/: Subdirectory for rationalizability-related code.

Latex_output

This directory holds LaTeX output files.

How to Use

1. Clone this repository to your local machine.
2. Navigate to the Code_for_numerical_computations/ directory to access the computational code.
3. Utilize plot.py to generate necessary plots.
4. Utilize rationalizability.py to generate necessary plots.
5. Access the Latex_output/ directory for LaTeX output files.
6. Copy and paste in the latex folder or change the latex code so the latex compiler can find the output png files

For more detailed insights, refer to the complete project documentation.

For any inquiries or clarifications, please feel free to contact me