This model is based on the article Dynamic modeling of Infectious Diseases, An application to Economic Evaluation of Influenza Vaccination Farmacoeconomics 2008, 26(1): 45-56 .
This model aims to show that how Tasmania government's Covid-19 policy can address the spread of the pandemic and in what way these policy can damage the economy.
This model assumes that if the COVID-19 cases are more than 10, the government will take action such as quarantine and lockdown at the area. These policy can indirectly affect the local economy in many different way. At the same time, strict policy may be essential for combating Covid-19.
From the simulation of the model, we can clearly see that the economy of Burine will be steady increase when government successfully reduces the COVID-19 cased and make it spreading slower.
Interesting finding: In this pandemic, the testing rate and the recovery rate are important to stop Covid-19 spreading. Once the cases of Covid-19 less than 10, the government might stop intervention and the economy of Burnie will back to normal.
Model of Covid-19 outbreaks at Burnie (Yingchao Yang,503757)
Clusters of interacting methods for improving health services network design and delivery. Includes Forrester quotes on statistical vs SD methods and the Modeller's dilemma. Simplified version of IM-14982 combined with IM-17598 and IM-9773
The model here shows the COVID-19 outbreaks in Burnie Tasmania, which has impacted in the local economy. the relationship between COVID-19 and economic situation has been shown in the graph. Based on the susceptible analysis, people who usual go out are might have chance to meet susceptible people and have a high rate to be infected. The period of spreading can be controlled by keeping social distance and Government lockdown policy.
Susceptible can be exposed by go out. resident has a possibility to infect and be infected by others. people who might be die due to the lack of immunity. and others would recover and get the immune.
Beside, the economy situation is proportionate to the recovery rate. If there are more recovery rate from the pandemic, the employment rate will be increased and the economy situation will recover as well.
Collapse of the economy, not just recession, is now very likely. To give just one possible cause,
in the U.S. the fracking industry is in deep trouble. It is not only that most
fracking companies have never achieved a free cash flow (made a profit)
since the fracking boom started in 2008, but that an already very weak and unprofitable oil industry cannot cope with
extremely low oil prices. The result will be the imminent collapse of the
industry. However, when the fracking industry collapses in the US, so will the American
economy – and by extension, probably, the rest of the world economy. To grasp a
second and far more serious threat it is vital to understand the phenomenon of ‘Global
Dimming’. Industrial activity not only produces greenhouse gases, but
emits also sulphur dioxide which converts to reflective sulphate aerosols in the
atmosphere. Sulphate aerosols act like little mirrors that reflect sunlight
back into space, cooling the atmosphere. But when economic activity stops, these
aerosols (unlike carbon dioxide) drop out of the atmosphere, adding perhaps as
much as 1° C to global average temperatures. This can happen in a very short period
time, and when it does mankind will be bereft of any means to mitigate the
furious onslaught of an out-of-control and merciless climate. The data and the unrelenting
dynamic of the viral pandemic paint bleak picture. As events unfold in the next few months, we may discover that it is too late to act, that our reign on this planet has, indeed, come to an abrupt end?
Covid 19 - irreversible and catastrophic consequences
The model shows the industry connection and conflict between Forestry and Mountain Tourism in Derby, Tasmania. The objective of this simulation is to find out the balance point for co-exist.
How Does the Model Work?
Both industries can provide economic contribution to Tasmania. Firstly, selling timbers through logging would generate income. Also, spendings from mountain bike riders would generate incomes. However, low tree regrowth rate can not cover up logging, which influences the beautiful vistas and riders' experiences. While satisfaction and expectation depend on vistas and experience, the demand of mountain biking would be influenced through repeat visits and world of mouth as well.
Interesting Insights
Although forestry can provide a great amount of economic contribution to Tasmania, over logging goes against ESG framework as well as creating conflict with mountain tourism. As long as the number of rider visits is stable, tourism can always provide a greater economic contribution compared to forestry. Therefore, the government should consider the balance point between two industries.
Simulation of Derby Mountain Bikes versus Forestry
Simple model of the global economy, the global carbon cycle, and planetary energy balance.
The planetary energy balance model is a two-box model, with shallow and deep ocean heat reservoirs. The carbon cycle model is a 4-box model, with the atmosphere, shallow ocean, deep ocean, and terrestrial carbon.
The economic model is based on the Kaya identity, which decomposes CO2 emissions into population, GDP/capita, energy intensity of GDP, and carbon intensity of energy. It allows for temperature-related climate damages to both GDP and the growth rate of GDP.
This model was originally created by Bob Kopp (Rutgers University) in support of the SESYNC Climate Learning Project.
This model simulates the economics of buying a home. It was created to compare buying a home against using investment returns to pay for rent. According to Micheal Finke, house prices typically run 20x monthly rental rates.
Try cloning this insight, setting the parameter values for real-world scenarios, and then running sensitivity analysis (see tools) to determine the likely wealth outcomes. Compare buying a home to renting. Note that each run will keep the parameters the same while simulating market volatility.
Added several versions of the model. Added a flow to make C increase. Added a factor to be able to change the value 0.5. Older version cloned at IM-46280
This model was designed from the SIR
model(susceptible, infected, recovered) to determine the effect of the covid-19
outbreak on economic outcomes via government policy.
Assumptions:
The government policy is triggered when the
number of infected is more than ten.
The government policies will take a negative
effect on Covid-19 outbreaks and the financial system.
Parameters:
We set some fixed and adjusted variables.
Covid-19 outbreak's parameter
Fixed parameter: Background
disease.
Adjusted parameters: Infection rate, recovery rate. Immunity loss rate can be
changed from vaccination rate.
Government policy's parameters
Adjusted parameters: Testing rate(from 0.15
to 0.95), vaccination rate(from 0.3 to 1), travel ban(from 0 to 0.9), social
distancing(from 0.1 to 0.8), Quarantine(from 0.1 to 0.9)
Economic's parameters
Fixed parameter: Tourism
Adjusted parameter: Economic growth rate(from
0.3 to 0.5)
Interesting insight
An increased vaccination rate and testing
rate will decrease the number of infected cases and have a little
more negative effect on the economic system. However, the financial system
still needs a long time to recover in both cases.
BMA708_Assignment 3_Nguyen Dang Khoa Vo_520272_COVID-19 outbreak and Burnie economy
If private bond holdings are going down and the government is running a big deficit then the central bank has to monetize bonds equal to the deficit plus the decrease in private bond holdings. We don't show the details of the central bank buying bonds here, just the net results.
See blog at http://howfiatdies.blogspot.com for more on hyperinflation, including a hyperinflation FAQ.
The macroeconomic ruel: SPENDING = INCOME = OUTPUT, WHICH DRIVES EMPLOYMENT is presented here in a schematic form. Output can be taken to be equivalent to GDP. In order to maintain output it is necessary for all the income earned to be spent. If this is not the case, then companies find they have excess unsold stock on their hands and will cut back on production. This, in time, will lead to an increase in unemployment as companies need fewer employees. The shortfall in spending can be made up by any of the three sectors that contribute to total output. However, in cases where a country has a trade deficit and where the private sector is not spending or investing enough, the only option is for the government to Net Spend i.e. to spend more than it collected in taxes causing a fiscal deficit.
This model attempts to illustrate a Strong Towns' perspective of municipal financing of our communities based on a development Growth Ponzi Scheme. http://www.strongtowns.org/the-growth-ponzi-scheme/
The communal economic investment by the community to help generate future economic prosperity and improve the community's quality of life.
If the community generates greater economic prosperity as a result of the Near Term Cash either directly through increased Municipal Revenue or indirectly through the enhancement of Community Wealth Generators and Place Making improvements within the community then it is a desirable investment.
If, however, it leads to ever increasing debt and the chasing of outside investments with the community as the means of collateral then it is a Growth Ponzi Scheme and the community needs to create some new paradigms to find a different path.
