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.
The upper
diagram shows the principal factors that have an influence on the budget
deficit and indicates what needs to be done to correct it. But this is not the
full story. The diagram below shows that
cutting public expenditure reduces aggregate demand and increases unemployment. The reduction of
aggregate demand reduces economic activity which has the effect of reducing
tax revenue. In addition, the state has to pay out funds
as there is a need for more unemployment benefit payments. The result of these austerity measures is often the opposite of their intended
purpose: they can increase rather than decrease the budget deficit.
There is
plenty of empiric evidence to show that this has happened time and time again.
For instance, a report from UNCTAD (United Nations Conference on Trade and
Development) found that between 1990 and 2000 in all the cases examined where cutbacks in public
spending and tax increases were used, the fiscal situation did not only not
improve but worsened. Despite such repeated evidence, unfortunately calls for austerity measures continue to be heard.
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
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Modern industrial civilisation has created massive
interdependencies which define it and without which it could not function. We all
depend on industrial farming to produce the food we eat, we depend on gasoline
being available at the gas station, on the
availability of electricity and even on the bread supplied by the local baker. Naturally,
we tend to support the institutions that supply the amenities and goods to
which we have become accustomed: if we get our food from the local supermarket,
it is likely that we would be opposed to it’s closure. This means that the economic
system that relies on continuous growth enjoys implicit societal support and that
nothing short of environmental disaster or a shortage of essential raw
materials will impede it’s growing indefinitely. It is not hard to work out the
consequences of this situation!
Clone of The Inescapable Dynamic of Economic Growth (Version 2)
In CIV4 a City's Health stock is a flourishing yet complex condition which acts as a City attribute intended to limit growth. Positive and negative feedback impacts City Health flow and derives from many sources: city's site, buildings, wonders, civics, resources, population, etc.
What drives this flow? When a cities unhealthiness is greater than its health limit, then for each point of population above the health limit consumes 3 food apiece rather than the standard 2 pieces. This further depletes city resources leading to starvation. In addition the city’s health also affects the rate at which it accumulates food.
For example: too much growth causes overpopulation which leads to an unhealthy city. This unhealthy city leads to less food accumulation thereby resulting in starvation which further compounds the cities unhealthiness.
One of the Archetypes that I see is the way out. The Pioneer Seeds bought will directly keep affecting DuPont's Profit until they start buying Ghanaian corn seeds. My Behavior over Time graphs keep disappearing so, I will just explain them instead. DuPont's Profit will keep going up because so many people like buying the pioneer seeds. Soil Erosion will also go up because there will be more plants growing. Farmers profit will go down because more and more farmers are buying the Pioneer seeds. Affordability of Pioneer Seeds is also going down because of there popularity. The amount of GMO labels is also going down because DuPont feels like it will risk there business. The amount of Pioneer Seeds bought is going up because more and more people keep buying them. The amount of Farming Jobs are going up because more and more people think they will get profit in this business and then it starts to stabilize and goes down a little because they realize farming isn't that good. The amount of Pioneer Seeds is affecting how big the harvest is so, the Harvest is going up. The Amount of Ghanaian Seeds bought is going down because there are more and more Pioneer seeds being bought. Dependency on DuPont is increasing because they need there Pioneer Seeds.
Also my story mode isn't working so sorry about that, but my dad couldn't figure it out either.
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.
Adjusted parameter: 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.
Starts from the bathtub model of economics developed by TSSEF.se (see the explanation here). It adds rich and poor and you can change the constraints on the system by moving the sliders (taxes, wages, rates, dividends etc) to see how the economic system functions at national level.
I have tried every combination I can but I think you will agree with me that the system is unstable. OR maybe I forgot something.
This page provides a structural analysis of POTUS Candidate Bernie Sanders. 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
