Deforestation and Economic Development in an Underdeveloped County
The economy is a self-organizing
system that needs continuous growth and a constant inflow of energy and
materials in order to maintain itself.
Absence of growth will make the system fragile, and economic contraction
could lead very quickly to its collapse. These are characteristics of dissipative
systems that apply to the free market economy. Another characteristic is that
economic activity will unavoidably lead to the generation of waste heat,
greenhouse gases and waste materials that the system must expel into its
environment, making the system unviable in the present context of global
warming and increasing oil prices.
The simplified graphic
representation of the economy shows how it is basically profits that generate the
funds for the resources needed to guarantee that the system can continue to
grow. Loans do not fulfil this function, since loans must be repaid from profit
and credit institutions will be reluctant to extend loans if they fear their
profits are endangered by the inability of creditors to generate enough income
to meet interest payments. So the system depends on private companies and blind
market forces. However, society can no longer rely on a system that is blindly
guided by the profit motive and that is to a large degree responsible for much
of the environmental problems that now afflict us. The system cannot continue in
its present self-reinforcing growth mode. Governments can and must step in to
fulfil their responsibility and fundamentally reform a system that has become harmful
and that is driven exclusively by profit.
The profit motive leads to an unsustainable situation and government intervention.
Irving Fisher's Debt Deflation Theory from Michael Joffe Fig. 3.4 p54 Ch3 Feedback Economics Book with Private Credit Inflation boom added to the bust cycles
Irving Fisher's Debt Deflation Theory
lab 13 Social and economic
MONEY_People, Experts. Knowledge IPN_Model2_Oscillations_0.1.7
THE NEW SCIENCE OF PLEASURE Daniel L. McFadden NBER Working Paper 18687
From Extended Neoclassical to Behavioral Choice Models
Economic capital growth in a system constrained by a non-renewable resource, Figure 37 from Thinking in Systems by Donella H. Meadows
Clone of REM 221 Figure 37. Economic capital
Based on the Market and Price simulation model in System Zoo 3, Z504. In this model the profit calculations were not realistic. They were based on the per unit profit, which does not take items not sold into account. Also the model was not very clear on profit since it was included in the total production costs and consequently in the unit costs and subsequently profit was calculated by subtracting unit costs of the market price. Thus profit had a double layer which does not make the model better accessible. I have tried to remedy both in this simplified version.
Simplified and changed Z504 Market and Price - System Zoo 3
Implementação do modelo Handy.
Referência:
Motesharrei, S.; Rivas, J.; Kalnay, E. "Human and nature dynamics (HANDY): Modelling inequality and use of resources in the collapse or sustainability of societies". Ecological Economics 101 (2014) 90-102
http://www.sciencedirect.com/science/article/pii/S0921800914000615
HANDY
IPN Initial Exploration 0.1
Ocean/atmosphere/biosphere model tuned for interactive economics-based simulations from Y2k on.
Lab 13:Scenario 1
A simple budget planning system. What additional complexities can you add?
Clone of ISD Savings Plan
This page provides a structural analysis of POTUS Candidate Rand Paul's
economic policy based on the information at: https://www.randpaul.com/issue/spending-and-debt and also https://www.randpaul.com/issue/taxes The method used is Integrative
Propositional Analysis (IPA)
available:
http://scipolicy.org/uploads/3/4/6/9/3469675/wallis_white_paper_-_the_ipa_answer_2014.12.11.pdf
DRAFT IPA of Rand Paul Economic Policy
Adapted from Fig 12.1 p.476 of the Book James A. Forte ( 2007), Human Behavior and The Social Environment: Models, Metaphors and Maps for Applying Theoretical Perspectives to Practice; Thomson Brooks/Cole Belmont ISBN 0-495-00659-9
Economic Theory Map
Book Fig. 42-43 Economic capital with its reinforcing growth loop constrained by a renewable resource.
Ocean/atmosphere/biosphere model tuned for interactive economics-based simulations from Y2k on.
Lab 13 Start
Model-SIM from Chapter 3 of Wynn Godley and Marc Lavoie's Monetary Economics, adapted for an open economy. The model is stock-flow consistent with only government money--no bills or bonds. No central bank and interest rates do not change. Government spends buying output from the production sector. The production sector is passive turning over all revenue over to households. Households save out of income and spend partially spend out of wealth. Imports and exports pass through the production sector illustrating the idea that consumer households buy from domestic businesses that which they have imported. The model also tracks the sectoral balance flows and changes in equity. Sectoral flows and equity balances match each other dollar for dollar to satisfy the sectoral balances accounting identity (Household Saving - Consumption) + (Business Saving - Expenditure) + (Taxes - Government Spending) - (Exports - Imports) = 0. Since business investment occurs internally to the Business Sector,
SFC_Model-SIM_open_economy
From a March 2016 blog entry by Ari Andricopoulos
The economy simply explained
An initial study of the economics of single use coffee pods.
Clone of Coffee Pods ISD Humanities v 1.02
System Dynamics - Ludhiana