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Study of the self-and all the rest society
Economic Insight
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Socio-economic Cycle - Final Porjecy
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Theory of Structural Change for IAMO Research Group


The part-whole paradigm

Examples of research issues addressed here include the path dependence of farm structures, regime shifts in land-system change, as well as transitional processes in the evolution of farm structures and innovation systems. All these issues feature counter-intuitive systemic properties that could not have been predicted using standard agricultural economics tools. The key strength of the research group in regard to the part-whole paradigm is the internationally renowned expertise in the agent-based modelling of agricultural policy. (More on what happened here until now / is happening now)

The system-environment paradigm

This paradigm is represented by conceptual research drawing inspiration from Niklas Luhmann’s theory of “complexity-reducing” and “operationally closed” social systems. The attributes of complexity reduction and operational closure are shown to generate sustainability problems, conflicts, social dilemmas, ethical issues, and divergent mental models. The organizing idea explaining these phenomena is the complexity-sustainability trade-off, i.e., the tendency of the operationally closed systems to develop excessive internal complexity that overstrains the carrying capacity of the environment. Until now, the conceptual work along these lines has focused on developing the systems-theoretic principles of ecological degradation and highlighted the sustainability-enhancing role of nonprofit organizations and corporate social responsibility. Another overarching topic has been the analysis of connections between Luhmann’s social systems theory and the evolutionary economics approaches, such as those of Thorstein Veblen and Kenneth Boulding. <!--[if gte mso 9]> Normal 0 false false false DE X-NONE X-NONE <![endif]--><!--[if gte mso 9]> <![endif]--><!--[if gte mso 10]> /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin-top:0in; mso-para-margin-right:0in; mso-para-margin-bottom:10.0pt; mso-para-margin-left:0in; line-height:115%; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri",sans-serif; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-ansi-language:DE;} <![endif]-->
Structure Change Model - IAMO
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Goodwin Model:
This is a basic version of the Goodwin Model based on Kaoru Yamagushi (2013), Money and Macroeconomic Dynamics, Chapter 4.5 (link)

Equilibrium conditions:
  • Labor Supply = 100
Devation from the equilibrium conditions generates growth cycles.
Goodwin Model
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Employment Dynamics
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This version of the CAPABILITY DEMONSTRATION model has been further calibrated (additional calibration phases will occur as better standardized data becomes available).  Note that the net causal interactions have been effectively captured in a very scoped and/or simplified format.  Relative magnitudes and durations of impact remain in need of further data & adjustment (calibration). In the interests of maintaining steady progress and respecting budget & time constraints, significant simplifying assumptions have been made: assumptions that mitigate both completeness & accuracy of the outputs.  This model meets the criteria for a Capability demonstration model, but should not be taken as complete or realistic in terms of specific magnitudes of effect or sufficient build out of causal dynamics.  Rather, the model demonstrates the interplay of a minimum set of causal forces on a net student progress construct -- as informed and extrapolated from the non-causal research literature.
Provided further interest and funding, this  basic capability model may further de-abstracted and built out to: higher provenance levels -- coupled with increased factorization, rigorous causal inclusion and improved parameterization.
Version 6B: Calibrated Student-Home-Teachers-Classroom
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Launchpad about reorganisation based on Bogdanov's Tektology general theory of organization, perceptual control theory, personal history and current concerns, linked to the modern (or historical) organization of biology and political economy. See a Bogdanov overview insight
Personalised Reorganization Bogdanov Biology and Political Economy
3 months ago
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Model Explanation:

This system dynamics model visualises the impact on investment into policing and community engagement resources on the crime rates within the youth population of Bourke, NSW. 
The model also adds in the variable of funding for safe houses. With a high rate of domestic violence, unfavorable home conditions and other socio-economic factors, many youth roam the streets with no safe place to go, which may lead to negative behaviour patterns.


Assumptions

Youth Population: 700
Total youth population in 2016 for Bourke LGA was 646 (ages 10-29). (Census, 2016) Figures rounded to 700 for purposes of this model simulation. 

Constants:
70% registration and engagement rates for Community funded programs
30% attendance rate for Safe Houses
50% crime conviction rate


Variables

Positive and Negative Influences

The model shows a number of key variables that lead youth to become more vunerable to commit a crime (such as alienation, coming from households with domestic violence, boredom and socio-economic disadvantages such as low income), as well as the variables that enhance the youth's likelihood to be a contributing member of the community (developing trusted relationships and connections with others, and having a sense of self worth, purpose and pride in the community). These factors (positive and negative) are aggregated to a single rate of 50% each for the purposes of the simulation, however each individual situation would be unique.  

Police Funding / Resources

Police funding and resources means the number of active police officers attending to criminal activities, as well as prevention tactics and education programs to reduce negative behaviour. The slider can be moved to increase or decrease policing levels to view the impact on conviction rates. Current policing levels are approx 40 police to a population of under 3000 in Bourke.

Crime Rate

Youth crime rates in Australia were 3.33% (2016). Acknowledging Bourke crime rates are much higher than average, a crime rate of 40% is set initially for this model, but can be varied using the sliders. 


Community Program Funding / Resources

Community Program Funding and Resources means money, facilities and people to develop and support the running of programs such as enhancing employability through mentorship and training, recreational sports and clubs, and volunteering opportunities to give back to the community. As engagement levels in the community programs increase, the levels of crime decrease. The slider can be moved to increase or decrease funding levels to view the impact on youth registrations into the community programs.

Observations

Ideally the simulations should show that an increase in police funding reduces crime rates over time, allowing for more youth committing crimes to be convicted and subsequently rehabilitated, therefore decreasing the overall levels of youth at risk.

A portion of those youth still at risk will move to the youth not at risk category through increased funding of safe houses (allowing a space for them to get out of the negative behaviour loop and away), whom them may consider registering into the community engagement programs. An increase in funding in community engagement programs will see more youth become more constructive members of the community, and that may in turn encourage youth at risk to seek out these programs as well by way of social and sub-cultural influences.

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Justice & Community Support Investment and the Impacts on Bourke Youth Population
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This page provides a structural analysis of POTUS Candidate Lindsey Graham's economic policy based on the information at: http://www.lindseygraham.com/issue/restore-fiscal-discipline/     http://www.lindseygraham.com/issue/ease-tax-and-regulatory-burdens/      http://www.lindseygraham.com/issue/achieve-energy-independence/     http://www.lindseygraham.com/issue/reform-entitlements/       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 Lindsey Graham Economic Policy
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Very basic stock-flow diagram of compound interest with table and graph output in interest and savings development per year. Initial deposit, interest rate, yearly deposit and withdrawal can all be modified.
Stock-Flow diagram of savings account
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Format: Given pre-conditions when independent variables(s) then dependent variable

Given Earnings Decline (0.25), Spending Variance (55), Initial Investment (500) and Rate of Return (RandNormal(0.06, 0.12)) when one of these independent variables change then how sensitive is Investment (22) over a 30 year time period (-1,000)

H1: if you Earn more then Investment will last much longer => rejected

H2: if you Spend less then Investment will last much longer => accepted

H3: if your Initial Investment is higher then Investment will last much longer => accepted

H4: if you reduce your Spend when Investments are declining then Investment will last much longer => accepted

Given Earnings Decline (0.25), Spending Variance (55), Initial Investment (500) and Rate of Return (RandNormal(0.06, 0.12)) when one of these independent variables are optimised then Investment will last exactly 30 years by minimising the absolute investment gap

H1: if you set an appropriate Spending Base then remaining Investment is 0 => rejected

H2: if you set an appropriate Spending Reduction then remaining Investment is 0 => rejected

Source for investment returns: https://seekingalpha.com/article/3896226-90-year-history-of-capital-market-returns-and-risks
OrangeFortune | Wealth Management when Retiring
4 4 months ago
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Michael Marmot's Eur J Epidemiol Essay 2017 See also IM-62760  Social determinants of health from Michael Marmot's  ABC 2016 Boyer Lectures on Social Justice and the Health Gap
Social Justice, Epidemiology and Health Inequalities
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Causal loop representations of macroeconomics taken from the System Dynamics literature contrasted with Forrester's main analysis of social and business organization layers See also Saeed's Forrester Economics IM-183285
Macroeconomics causal loop diagrams
8 4 months ago
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An initial study of the economics of single use coffee pods.
3 variables-- ORIGINAL Coffee Pods ISD Humanities v 1.02
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The World Socio-Economics model is computer model to simulate the consequence of interactions between the earth and human systems based on the World3 model by the work of Club of Rome, The Limits to Growth[1].

The World3 model builds by system dynamics theory that is has an approach to understanding the nonlinear behaviour of complex systems over time using stocks, flows, feedback loops, table functions and time delays.

The Limits to Growth concludes that, without substantial changes in resource consumption, "the most probable result will be a rather sudden and uncontrollable decline in both population and industrial capacity". 

Since the World3 model was originally created, it has had minor tweaks to get to the World3-91 model used in the book Beyond the Limits[2], later improved to get the World3-03 model used in the book Limits to Growth: the 30 year update[3].

References;
[1] Meadows, Donella H., Meadows, Dennis L., Randers, Jørgen., Behrens III, William W (1972). The Limits to Growth. 

[2] Meadows, Donella H., Dennis L. Meadows, Randers, Jørgen., (1992). Beyond the limits: global collapse or a sustainable future.

[3] Meadows, Dennis., Randers, Jørgen., (2004). The limits to growth: the 30-year update.
World Socio-Economics model 2000-2100
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An initial study of the economics of single use coffee pods.
Clone of Coffee Pods ISD Humanities v 1.02
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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
4 weeks ago
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Economic Cost-Benefit Analysis- Roadkill Mitigation
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I propose we grow this sim model (or similar) over time to help ourselves better understand the opposing investment and austerity strategies now being advocated for the U.S. government. The hope is to build as simple a model as possible that subsumes the major underlying feedback loops that probably exist in the mental models of proponents of each of these positions. Starting this model was inspired by this Investment vs. Austerity discussion http://www.linkedin.com/groups/Investment-vs-Austerity-How-can-4582801.S.157876413

20120908a_InvestmentVsAusterity
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BMA708_Assignment 3_Xiaoya Zuo
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Ijssel Delta Final
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Economic Model