Adam Smith's The Invisible Hand: The Feedback Structure of Markets. From Sterman JD Business Dynamics p170 Fig 5-26. A price-mediated resource allocation system..

• 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?"

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

When people talk about a government deficit, they forget that this is only one side of the ledger. On the other is a corresponding non-government SURPLUS. The money the government spends is not lost but shows up in the private sector as income. When one talks only of the deficit then one can understand that many think it should be reduced or even converted into a surplus, but reducing the government deficit reduces private sector income and a government surplus forces a deficit on the private sector with a potentially devastating effect on private sector wealth and economic activity.  Unless the economy is overheating, government deficits are usually healthy. For countries that run traditionally a trade deficit, such as the US they are necessary to maintain economic activity. Consider this fact: for almost all of past 40 years the US and the UK have run deficits without any harmful effects!

This model simulates a COVID outbreak occurring at Burnie, Tasmania. It links the extent to the pandemic with governments intervention policies aiming to limit the spread of the virus. The other part of the model illustrates how will the COVID statistics and the government enforcement jointly influence the economic environment in the community. A number of variables are taken into account, indicating positive or negative relationship in the infection and the economy model respectively.

 

Assumptions

·         Government takes responsive actions when the number of acquired cases exceeds 10.

·         Government’s prompt actions, involving closure of the state border, lockdown within the city, plans on mandatory vaccination and testing, effectively control the infection status.

·         Economic activities are reduced due to stagnation in statewide tourism, closure of brick-and-mortar businesses, and increased unemployment rate, as results of government restrictions.

 

Insights

Government’s rapid intervention can effectively reduce the infected cases. The national vaccination rollout campaign raises vaccination rate in Australians, and particularly influence the death rate in the infection model. Please drag the slider of vaccination to a higher rate and run the model to compare the outcomes.

Although local economy is negatively affected by government restriction policies, consumer demand in online shopping and government support payments neutralize the negative impact on economy and maintain the level of economic activities when infections get controlled. 

WIP of Rammelt's 2019 System Dynamics Review Article which has STELLA and Minsky software versions as supplements. Compare with the older IM-2011 version

Difficulties with formulae and links

The model is built to demonstrates how Burnie Tasmania can deal with a new COVID-19 outbreaks, taking government policies and economic effects into account.

Based on the Market and Price simulation model in System Zoo 3.

This is a first attempt to illustrate the interconnected nature of the economic assets of Roswell - Chaves County

This seeks to model increasing improvements in long run economic growth potential as the education level increases.

Based on Psychological Medicine Dec 2015 article Depression as a systemic syndrome: mapping the feedback loops of major depressive disorder by A. K. Wittenborn, H. Rahmandad, J. Rick and N. Hosseinichimeh, mentioned here. See also 2018 N. Hosseinichimeh Plos ONE article for rumination focussed SD simulation

• 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.

This Insight is used for simulating growth of a company with specified parameters.

WIP Ideas from Science Special Issue May 2014

This is a toy model of an investment market.