Public sector
Sovereigns & AI jurisdictions
Stress-test policy, migration, infrastructure, capital flows.
The Economic World Model.
Economic simulation for decisions that move worlds
Loka Labs helps governments, financial institutions, and global event operators stress-test policies, markets, and large-scale events before they unfold in the real world.
Use cases
Where the engine runs.
Capital markets
Financial institutions
Simulate macro shocks, sovereign risk, second-order market effects.
Live operations
Global commercial events
Model city impact, mobility, hotel demand, security load, tax uplift.
The structural gap
Navigating a living system
with a dead map.
Policies are interventions. Crises are counterfactual failures. Yet the tools we use to make decisions operate on mere statistical association.
Legacy models treat humanity as a predictable mass. But economic systems are no longer stationary. AI is rewriting reality faster than any historical model can follow.
The map was right once.
The territory has moved.
The territory has moved.
280×
↓
Generative-agent simulation cost, two-year collapse.
Real-world trial cost
↑
The curves have crossed. Simulation is now the cheaper instrument.
The catalyst
History has failed
as a predictive tool.
Cost Collapse
Generative agent simulation cost dropped 280× in two years. Two curves are crossing: simulation cost falls exponentially, real-world trial cost rises.
Novel Worlds
Charter cities and AI jurisdictions are being built from zero. Using past data to predict these environments isn't just inaccurate; it's reckless.
"
The three rungs of the Ladder of Causation:
Association, Intervention, Counterfactual.
— Judea Pearl, The Book of Why
Architecture · Pearl hierarchy
Three rungs.
One causal substrate.
Architected upon Judea Pearl's Hierarchy of Causality. We discard correlative guessing for structural understanding. Select a rung to inspect the operative graph and the question it answers.
Rung 01 · Observational
P(Y | X)
"How are policy, market, and welfare correlated?"
Joint distributions over observed variables. Patterns, not mechanisms.
P(Y | X = x)
Infrastructure · three layers
Others stop at Layer 1.
Loka Labs has all three.
A vertically-integrated causal stack.
L1 · Agents
N = 0
Layer 1 — Association
Behavioral Simulation
Models heterogeneous actors. Outputs state-space evolution: how environments change from t to t+1. High-fidelity instantiation of synthetic populations governed by calibrated micro-foundations, creating emergent macro-economic phenomena without forcing top-down equilibrium constraints.
L2 · Network
Δ = 0
Layer 2 — Intervention
Economic Engine
The physics of an economy. Forces changes to propagate through the agent network, revealing second-order effects. A proprietary compute engine designed specifically for the nonlinear dynamics of financial flows, resource allocation, and trade networks.
L3 · State-space
paths = 0
Layer 3 — Counterfactual
Formal Verification
Mathematically proves properties hold. Before implementation, every proposed intervention is exhaustively stress-tested across a massive state space to identify systemic vulnerabilities and unintended consequences. Results are not just probable. They are provable.
Operating principle
Agents simulate decisions. Economics enforces the rules. Math proves the results.
Prediction · Verified Outcome
Pre-event prediction
Verified outcome
Public verification
The error is public,
timestamped, and verifiable
by anyone.
Ground Truth Calibration
We do not depend on synthetic data. Anchored on public macroeconomic data and decades of controlled behavioral economics research (Kahneman, Thaler).
Live Public Verification
Major live events & 2026 World Cup. Pre-event economic-impact prediction vs real verified data. Not a client testimonial — an accuracy test anyone can check.
Team
The people behind Loka Labs.
Lora Jiang
Co-founder, CEO
Parsons. Harvard.
Led Taiko's $1.2B Series A (Lightspeed Faction lead) and $2.2B TGE — 4 months from close to public market. As Head of Strategic Finance. Backed by Sequoia China, Tencent, BAI.
Akasha Zhu
Co-founder, President
Tsinghua at 16. MIT.
12 patents. Founder of Hetu (distributed systems), Vinci (consumer hardware), and Tongxue (social network). Identified the Economic World Model category before anyone else was looking.
Jialin Li
Co-founder, CTO
NUS, Assistant Professor.
Distributed systems researcher. OSDI / NSDI Best Paper. Co-founded Hetu with Akasha — they have shipped together before. Builds the systems that make the impossible run at scale.
Joseph Sifakis
Founding Scientist
Turing Award, 2007. Founder of model checking.
He pioneered proving complex systems correct before they run — chips, aircraft, mission-critical infrastructure. His first commercial engagement applying formal verification to economic systems.
Built on
Formal Verification (2007 Turing Award)
& Distributed AI at Scale (NSDI / OSDI)
& Distributed AI at Scale (NSDI / OSDI)
Simulation is not an improvement.
It is a prerequisite.
Data sovereignty by design. Runs entirely on client infrastructure.