A sample model for class discussion modeling COVID-19 outbreaks and responses from government with the effect on the local economy. Govt policy is dependent on reported COVID-19 cases, which in turn depend on testing rates less those who recover
Assumptions
The government has reduced both the epidemic and economic development by controlling immigration.
Regulation of resource allocation to service in response to service quality. A non-price-mediated resource allocation system. From Sterman JD Business Dynamics p172 Fig 5-27
Any activity requires the use of energy. Economic activity
is not possible without energy,
especially fossil fuels. An increase in economic activity necessarily
leads to an increase in the use fossil
fuels and greenhouse gas emissions. In addition there will be a commensurate increase in waste products,
pollution and heat. This is dictated by the laws of physics and unavoidable. A problem arise when the cost of this degeneration
caused by continual economic growth surpasses the benefit society derives from it. The ecological economist Professor Herman Daly (2014) explained that
when the impact on the ecosystem is correctly measured, global growth has reached
a point where the total private and social costs of economic growth outweigh
the private and social benefits. In other words, more economic growth is making global society worse off overall - growth has become uneconomic! The model
shows that eventually pressures will build up that counteract the perennial
belief that all social ills can be solved with economic growth.
This page provides a structural analysis of POTUS Candidate Rick Perry's economic policy based on the information at: https://rickperry.org/issues/
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
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
This
paper aims at describing a case where system dynamics modeling was used to evaluate
the effects of information and material supply lead-time variation on sales
contributions margins and operating cash conversion cycle of a commodity export
business. An empirical dynamic model,
loaded with econometric theory of price effect on competitive demand, was used
to describe the input data. The model simulation
outputs proved themselves relevant in analyzing the complex interconnections of
multiple variables affecting the
profitability in a commercial routine, supporting the decision process among
sales managers.
From Schluter et al 2017 article A framework for mapping and comparing behavioural theories in models of social-ecological systems COMSeS2017 video.See also Balke and Gilbert 2014 JASSS article How do agents make decisions? (recommended by Kurt Kreuger U of S)
