This is a protoype of the bahai high level economic model in accordance to the bahai-economic principles.
This is a protoype of the bahai high level economic model in accordance to the bahai-economic principles.
  A system dynamics model to CBA of smart grid project
A system dynamics model to CBA of smart grid project
11 9 months ago
WIP Summary of Davies 2017  article  from special Theory Culture and Society issue on Elites and Power after Financialization
WIP Summary of Davies 2017 article from special Theory Culture and Society issue on Elites and Power after Financialization
A simple budget planning system.  What additional complexities can you add?
A simple budget planning system.  What additional complexities can you add?
  Format: Given  pre-conditions  when  independent variables(s)  then  dependent variable         Given  Earnings Decline (0.25), Spending Variance (55), Initial Investment (500) and Rate of Return (RandNormal(0.06, 0.12))  when  one of these independent variables change  then  how   sensitive   is
Format: Given pre-conditions when independent variables(s) then dependent variable

Given Earnings Decline (0.25), Spending Variance (55), Initial Investment (500) and Rate of Return (RandNormal(0.06, 0.12)) when one of these independent variables change then how sensitive is Investment (22) over a 30 year time period (-1,000)

H1: if you Earn more then Investment will last much longer => rejected

H2: if you Spend less then Investment will last much longer => accepted

H3: if your Initial Investment is higher then Investment will last much longer => accepted

H4: if you reduce your Spend when Investments are declining then Investment will last much longer => accepted

Given Earnings Decline (0.25), Spending Variance (55), Initial Investment (500) and Rate of Return (RandNormal(0.06, 0.12)) when one of these independent variables are optimised then Investment will last exactly 30 years by minimising the absolute investment gap

H1: if you set an appropriate Spending Base then remaining Investment is 0 => rejected

H2: if you set an appropriate Spending Reduction then remaining Investment is 0 => rejected

Source for investment returns: https://seekingalpha.com/article/3896226-90-year-history-of-capital-market-returns-and-risks
 Goodwin cycle  IM-2010  with debt and taxes added, modified from Steve Keen's illustration of Hyman Minsky's Financial Instability Hypothesis "stability begets instability". This can be extended by adding the Ponzi effect of borrowing for speculative investment.

Goodwin cycle IM-2010 with debt and taxes added, modified from Steve Keen's illustration of Hyman Minsky's Financial Instability Hypothesis "stability begets instability". This can be extended by adding the Ponzi effect of borrowing for speculative investment.

Causal loop representations of macroeconomics taken from the System Dynamics literature contrasted with Forrester's main analysis of social and business organization layers See also Saeed's Forrester Economics  IM-183285
Causal loop representations of macroeconomics taken from the System Dynamics literature contrasted with Forrester's main analysis of social and business organization layers See also Saeed's Forrester Economics IM-183285
7 8 months ago
This Insight is used for simulating growth of a company with specified parameters.
This Insight is used for simulating growth of a company with specified parameters.
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. The susceptible people are the local Burnie residents. If residents were infected, they would either recovered or dead. However, even they do r
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.
The susceptible people are the local Burnie residents. If residents were infected, they would either recovered or dead. However, even they do recover, there is a chance that they will get infected again if immunity loss occurs.
From the simulation result we can see that with the implementation of local government policies including travel ban and social distancing,  the number of infected people will decrease. The number of recovered people will increase in the first 5 weeks but then experience a decrease.
In addition, with the implementation of local government policy, the economic environment in Burnie will be relatively stable when the number of COVID-19 cases is stable.
WIP Elements from macroeconomics, neoliberalism and commercial determinants of health frameworks to provide a background to the effects of the universal basic income on health and wellbeing for the first 1000 days. UBI diagram modified from  Johnson2021 article  Expanded in  Insight 2
WIP Elements from macroeconomics, neoliberalism and commercial determinants of health frameworks to provide a background to the effects of the universal basic income on health and wellbeing for the first 1000 days. UBI diagram modified from Johnson2021 article Expanded in Insight 2
Ocean/atmosphere/biosphere model tuned for interactive economics-based simulations from Y2k on.
Ocean/atmosphere/biosphere model tuned for interactive economics-based simulations from Y2k on.
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 o
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. 

  Goodwin Model:   This is a basic version of the Goodwin Model based on Kaoru Yamagushi (2013),  Money and Macroeconomic Dynamics , Chapter 4.5 ( link )     Equilibrium conditions:   Labor Supply  = 100  Devation from the equilibrium conditions generates growth cycles.
Goodwin Model:
This is a basic version of the Goodwin Model based on Kaoru Yamagushi (2013), Money and Macroeconomic Dynamics, Chapter 4.5 (link)

Equilibrium conditions:
  • Labor Supply = 100
Devation from the equilibrium conditions generates growth cycles.
 This causal loop diagram illustrates the interconnected factors affecting the economic empowerment of Congolese refugee women in Rwanda, with economic dependency as the central problem reinforced by limited access to vocational training, employment opportunities, and financial services. The diagram
This causal loop diagram illustrates the interconnected factors affecting the economic empowerment of Congolese refugee women in Rwanda, with economic dependency as the central problem reinforced by limited access to vocational training, employment opportunities, and financial services. The diagram shows two key reinforcing loops: one where vocational training leads to employment and income generation, which reduces dependency and improves access to further training (R1), and another where income generation builds self-confidence and skills recognition, leading to better employment opportunities (R2), while language barriers and cultural constraints act as inhibiting factors throughout the system.

6 months ago
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 co
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.
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. Firs
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/

WIP SD REpresentation of Steve Keen's BOMD Minsky model (described in Fig.5 of his patreon Jan2021 Draft New Economics Manifesto) to hope to make the causal structure clearer
WIP SD REpresentation of Steve Keen's BOMD Minsky model (described in Fig.5 of his patreon Jan2021 Draft New Economics Manifesto) to hope to make the causal structure clearer
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
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
Clone of Pesticide Use in Central America for Lab work        This model is an attempt to simulate what is commonly referred to as the “pesticide treadmill” in agriculture and how it played out in the cotton industry in Central America after the Second World War until around the 1990s.     The cotto
Clone of Pesticide Use in Central America for Lab work


This model is an attempt to simulate what is commonly referred to as the “pesticide treadmill” in agriculture and how it played out in the cotton industry in Central America after the Second World War until around the 1990s.

The cotton industry expanded dramatically in Central America after WW2, increasing from 20,000 hectares to 463,000 in the late 1970s. This expansion was accompanied by a huge increase in industrial pesticide application which would eventually become the downfall of the industry.

The primary pest for cotton production, bol weevil, became increasingly resistant to chemical pesticides as they were applied each year. The application of pesticides also caused new pests to appear, such as leafworms, cotton aphids and whitefly, which in turn further fuelled increased application of pesticides. 

The treadmill resulted in massive increases in pesticide applications: in the early years they were only applied a few times per season, but this application rose to up to 40 applications per season by the 1970s; accounting for over 50% of the costs of production in some regions. 

The skyrocketing costs associated with increasing pesticide use were one of the key factors that led to the dramatic decline of the cotton industry in Central America: decreasing from its peak in the 1970s to less than 100,000 hectares in the 1990s. “In its wake, economic ruin and environmental devastation were left” as once thriving towns became ghost towns, and once fertile soils were wasted, eroded and abandoned (Lappe, 1998). 

Sources: Douglas L. Murray (1994), Cultivating Crisis: The Human Cost of Pesticides in Latin America, pp35-41; Francis Moore Lappe et al (1998), World Hunger: 12 Myths, 2nd Edition, pp54-55.

2 months ago