This model shows the structure and operation of a simple economy. It can represent economic systems at different levels of abstraction (e.g. a single good, a group of goods, multiple groups, & an "economy.")

This model has one significant difference from Model 4. The fractional consumption rate table serves the purpose of demonstrating the effects of changes in the fractional consumption rate (or the converse the fractional rate of saving) from 100% to less-than 100% to more-than 100%.

It demonstrates dramatically the effects of significant changes in consumption rates.

First Basic Macro economic model

Buying and storing electricity when it is cheap, and selling it when it is expensive. What are the benefits, both public and private?

A simple budget planning system.  What additional complexities can you add?

This is a reconstruction of the SIMM model presented in Chapter 2 of Feedback Economics (Contemporary Systems Thinking)

Multiscale view of Combined PH and Economic Views IM 70763  in preparation for integrating with Prevention Investment Framework (private) IM

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

Clone of Wagdy Samir Macroeconomics work in progress IM-901 Additions and deletions based on Robert Skidelsky's description of Keynes general THeory from his Biography Vol2 p 549 -571

Overview 

This model not only reveals the conflict between proposed logging of adjacent coups and Mountain bike in Derby but also simulates competition between them. The simulation model aims to investigate the potential coexistence opportunities between the mountain biking and forestry and find out the optimal point for coexistence to help improve Tasmania’s economy. 

 

How the model works 

It is recognized that the mountain biking and forestry industries can help support the Tasmanian community and strengthen the Tasmanian economy. The logging and forest sector in Derby can help the local community generate wealth and create more employment opportunities. The sector main source of income come from selling timber such as domestic and export sales. Nevertheless, the sector’s profit has decreased over the past few years on account of the weaker demand and reduced output. Accordingly, the profitability and output of the sector have fluctuated in response to the availability of timber, the timber price movements as well as the impact of changing demand conditions in downstream timber processing sectors. The slow growth rate for a timber has a negative impact on the profitability of the forestry industry and the economic contribution of this industry is set to grow slower, as there is a positive correlation between these variables. In addition, the mountain biking industry in Derby can bring a huge significant economic contribution to the local community. The revenue streams of the industry come from bike rental, accommodation, retail purchase and meals and beverages. These variables also influence the past experience which is positive correlation between reviews and satisfaction that can impact the demand for the mountain biking trails. More importantly, the low regeneration rate for a timber can have a negative impact on the landscape of the mountain biking and the tourist’s past experience that led to a decrease in the demand of tourists for the mountain biking, as the reviews and satisfaction are dependent on the landscape and past experience. It is evident that the industry not only helps the local community generate wealth through industry value addition but also creates a lot of employment opportunities. Therefore, the Mountain Bike Trails can be regarded as sustainable tourism that can help increase employment opportunities and economic contribution that can be of main economic significance to the Tasmania’s economy. Therefore, both industries can co-exist that can maximise the economic contribution to the local community and the Tasmanian economy.

Interesting Insights

It is interesting to note that the activity of cutting down trees does not influence the development of Mountain Biking industry. By lowering the prices of accommodation, food, bike rental and souvenirs, it can help increase the reviews and recommendations of Mountain Biking that will enhance the number of tourists. In this case, the Mountain Biking industry can achieve sustainable economic growth in the long-term while the economic growth rate of forestry industry will continue to decrease. 

During the 'big recession' many governments have deliberately repressed salaries, usually via structural reforms, in order to gain competitivity. However, repression of salaries increases inequality, social discontent and often has counterintuitive effects. Salaries are a cost for companies, but they are also the basis for the demand for the goods and services they offer: people with little income cannot afford them. Scientific studies have shown repeatedly that economic growth generated via salary increases does not endanger the creation of employment, but rather reinforces it. In most countries, the 'positive effect of salary increases' eclipses any possible negative effects on export competitivity and even any detrimental effect on investment. A good example of such a study is the work of ONARAN and OBST on Wage-led Growth in the EU15 Member States (2016).  This positive dynamic has been highlighted in the model by prominent arrows. The policy implications for governments are clear! 

Capstone Framing

This is a protoype of the bahai high level economic model in accordance to the bahai-economic principles.

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