Ocean/atmosphere/biosphere model tuned for interactive economics-based simulations from Y2k on.

• This model examines how sustainable consumerism is from social, economic, and environmental aspects. The question in focus is "How will our second-hand clothing donations affect communities in developing countries, specifically Kenya?"

Ocean/atmosphere/biosphere model tuned for interactive economics-based simulations from Y2k on.

I have tried to capture the unemployment benefits budget in a causal loop diagram. You can make this as extensive as you want, but I have tried to focus on how unemployment benefits are financed and on the main determinants of expenditures and income. I was not (yet) able to 'close te loop' - to build the diagram up from feedback cycles. 
The diagram is in Dutch.

Peak oil occurs not when there are no more reserves, but when it is too expensive to bring them to the surface. The diagram describes a dynamic where peak oil leads to oil prices that are too low for oil companies to produce oil. There are two keys to understand this counterintuitive situation. First, it is important to realize that without energy (oil) no economic activity can take place. Second, when supplies of oil become scarce, non-elite workers  - because of the contraction of the economy - will lose their jobs or suffer salary cuts. This will make goods containing (or using) oil products too expensive for the masses. Demand for those products (most things on the market) will decline and with it demand for oil - oil prices will drop too low for oil companies to produce oil!

These ideas stem from Gail Tverberg's blog: 'Our Finite World'. https://ourfiniteworld.com/

Nobody seems to notice bubbles until they burst. One possible reason is that those caught up in a bubble are completely blinded by the grip, the overpowering logic and force excerted by the positive feedback loop that drives it. Financial bubbles occur time and time again - and nobody seems to learn. Another example on a different time scale is an argument that spins out of control and ends in violence. The participants seem to be blind to the consequences; the immediate and imperative logic of the feedback loop imposes itself. The vortex created by the feedback loop even seems to draw in outsiders, such as new investors. Is this the reason why we don't notice bubbles? This explanation is meant to stimulate discussion!

Plan for CCP project completion see IM-102242  for WIP detail of the structures of the related models

First pass at model depicting importance of Net Capital Accumulation on economic growth of firm - from firm's perspective

On the occasion of th G20-meeting in Toronto, the German Economics minister Herr Schaüble said that without restoring confidence it would not be possible to get consumer spending and business investment going. Similar remarks were made by David Cameron and Señor Zapatero of Spain. All maintain that confidence is a pre-requisite to get growth going and that, therefore, it was imperative to reduce fiscal deficits. Reducing the fiscal deficit will restore confidence at first. However, reducing the deficit very quickly will introduce a dynamic that may cause the economy to decline - and perhaps depress  consumers demand even further.  It will actually destroy confidence: few businesses are inclined to invest in a shrinking economy. Cutting the deficit too rapidly or too steeply can lead to a confidence trap.

NOTE: A big experiment is now taking place in the UK - the government has cut public spending severely! Will this lead to hardship and, perhaps, social unrest? 

Implementation of the Solow model of economic growth with labor enhancing technology.

parameters: s, alpha, delta, n, gA
variables: Y. K, L, C, A
per capita variables: y, k, c, a
per capita and technology variables: y~, k~, c~
steady state variables: y~*, k~*, c~*
all variables come with relative growth rates g

Features:

+steady state from beginning
+one time labor shock
+permanent savings quote shock
+permanent technological growth rate shock

Decreasing steady state variables when starting in steady state are numeric artifacts.

​ This model is used in a world studies extended essay research. The research question is: In what ways would the water desalination method used in Singapore benefit   water-stressed and economically less developed countries, using Palestine as a case study.

This model shows the operation of a simple economy with two modifications made to Model 2 -- 1) feedback from production rate to consumption rate and 2) the use of a fractional rate input for calculating consumption rate. 

In summary, lower fractional rates of consumption (based on production) result in higher levels of Savings.

Ocean/atmosphere/biosphere model tuned for interactive economics-based simulations from Y2k on.

Explanation of the Model

This simple model describes wealth accumulation. The value in income is described by the following simple equation:

WIP Summary of MIchael Hudson's Book Killing the Host: How Financial Parasites and Debt destroy the Global Economy 

Ocean/atmosphere/biosphere model tuned for interactive economics-based simulations from Y2k on.

This is a simplification of the Austerity vs Prosperity model in the hope that it will be easier to understand.