Based on chapter 14 of Modeling Dynamic Economic Systems

Irving Fisher's Debt Deflation Theory from Michael Joffe Fig. 3.4 p54 Ch3 Feedback Economics Book with Private Credit Inflation boom added to the  bust cycles

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.

Challenge p.212 Business Dynamics, Sterman

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.

Based on the SIR (Susceptible, Infected, Recovered) model of disease, this is an upgraded model with more specifc vaeriables.

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

Graph representation of Ch3 of their 2007 Monetary Economics book, based on Alvarez and Ehnts 2015 paper The roads not taken. Also see more complex WIP to successively split sectors at IM-185550 . See also essence of MMT IM for simpler intro

This model shows the operation of a simple economy. It demonstrates the effect of changes in the fractional rate of consumption (or the converse, the fractional rate of saving.) It also, unlike Models 2 & 3, shows the influence Savings has on the production rate.

In summary, lower rates of consumption (based on production) result in higher rates of both production and consumption in the long-run.

Causal loop structure of system dynamics models of the business cycle and the Kondratieff long wave from Gene Bellinger's AI gemini prompts mc and mr Jan2026 From MIT Sloan school work esp Forrester and Sterman

Overview of Part E Ch 20 to 24 of Mitchell Wray and Watts Textbook see IM-164967 for book overview

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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]-->

A simple implementation of a Dynamic ISLM model as proposed by Blanchard (1981), and taken from An introduction to economic Dynamics - Shone (1997) - chapter 5. This model might serve as a framework to evaluate economic policies over GDP growth.

ABOUT THE MODEL

This is a dynamic model that shows the correlation between the health-related policies implemented by the Government in response to COVID-19 outbreak in Burnie, Tasmania, and the policies’ impact on the Economic activity of the area.

 ASSUMPTIONS

The increase in the number of COVID-19 cases is directly proportional to the increase in the Government policies in the infected region. The Government policies negatively impact the economy of Burnie, Tasmania.

INTERESTING INSIGHTS

1. When the borders are closed by the government, the economy is severely affected by the decrease of revenue generated by the Civil aviation/Migration rate. As the number of COVID-19 cases increase, the number of people allowed to enter Australian borders will also decrease by the government. 

2. The Economic activity sharply increases and stays in uniformity. 

3. The death rate drastically decreased as we increased test rate by 90%.

This model analyzes the interaction between climate change mitigation and adaptation in the land use sector using the concept of forest transition as a framework.

This is to support a discussion on money flows and growth. Money as a lubricant for the flow of embodied energy in human systems.
See also A Prosperous Way Down website

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. 

From Jay Forrester 1988 killian lectures youtube video describing system dynamics at MIT. For Concepts See IM-185226. For more detailed biography See Jay Forrester memorial webpage For MIT HIstory see IM-184930