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 rat
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.
Current and proposed Structure of CCP and related Models expanding on the details provided in the Project Completion plan  IM-101760
Current and proposed Structure of CCP and related Models expanding on the details provided in the Project Completion plan IM-101760
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
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
 MODERN MONETARY THEORY SHOWS HOW FULL EMPLOYMENT CAN BE ACHIEVED!  POTENTIAL GDP is a level of overall spending - by the government and the non-government sector - at which there is full employment. If the economy is not operating at
its potential, then the  private sector
has failed to invested or

MODERN MONETARY THEORY SHOWS HOW FULL EMPLOYMENT CAN BE ACHIEVED!

POTENTIAL GDP is a level of overall spending - by the government and the non-government sector - at which there is full employment. If the economy is not operating at its potential, then the  private sector has failed to invested or spend enough to generate the necessary growth nor has income  from net exports contributed enough. This only leaves the government to close the spending gap. Conceptually, a government disposing of its own freely floating currency could act using two powerful tools -  spending in excess of tax revenue, and taxation - to ensure that the gap between the actual economic activity and potential GDP is quickly closed. Achieving the  full employment that prevailed for 30 years between 1945 and 1975 in western economies is definitely possible! 

Stock-flow diagram of compound interest with table and graph output in interest and savings development per year in Dutch. With the possibility of a negative interest from a predefined threshold.
Stock-flow diagram of compound interest with table and graph output in interest and savings development per year in Dutch. With the possibility of a negative interest from a predefined threshold.
This model illustrates the current practice and consequences of government spending. Following the
direction of the arrows from right to left the model shows the following sequence
based on current practice:

 Government
Spending at a certain point leads to spending in excess of tax receipts. This
w
This model illustrates the current practice and consequences of government spending. Following the direction of the arrows from right to left the model shows the following sequence based on current practice:

Government Spending at a certain point leads to spending in excess of tax receipts. This will automatically lead to the issue of treasuries in the belief that the excess spending must be financed by borrowing (although the government has the capacity to create  money). This in turn will increase the national debt.

 Consequences that follow from this practice:

1) That national debt increases whenever the government spends in excess of tax receipts.

2) That the government must pay interest on the debt issued, which in turn increases and reinforces the need for government spending.

3) That the interest paid on treasuries will increase private sector income.

There is an alternative view, supported by Modern Monetary Theory, of how government spending can proceed. Please see this  Insight: 

https://insightmaker.com/insight/19954

  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.
 Acest model este adaptat după reprezentarea lui Harmut Bossel, în lucrarea  "System Zoo 3 Simulation Models, Economy, Society, Development."  Utilizarea modelului ne poate ajuta pentru a vizualiza evolutia populatiei pe grupe de varsta sau pentru a gestiona probleme cum ar fi ocuparea forței de mun
Acest model este adaptat după reprezentarea lui Harmut Bossel, în lucrarea  "System Zoo 3 Simulation Models, Economy, Society, Development."
Utilizarea modelului ne poate ajuta pentru a vizualiza evolutia populatiei pe grupe de varsta sau pentru a gestiona probleme cum ar fi ocuparea forței de muncă.
I made this model to simulate how a companies revenue will change depending on the lifetime of the appliances it manufactures, in combination with the ratio of repair costs and price. It also shows the accumulation of e-waste.
I made this model to simulate how a companies revenue will change depending on the lifetime of the appliances it manufactures, in combination with the ratio of repair costs and price. It also shows the accumulation of e-waste.
​Summary of Hermans Scale dynamics of grassroots innovations through parallel pathways of  transformative change Ecological Economics 2016  article (paywalled)  This is applied to  health in a subsequent insight
​Summary of Hermans Scale dynamics of grassroots innovations through parallel pathways of  transformative change Ecological Economics 2016 article (paywalled) This is applied to health in a subsequent insight
Adapted from Hartmut Bossel's "System Zoo 3 Simulation Models, Economy, Society, Development."  ​Population model where the population is summarized in four age groups (children, parents, older people, old people). Used as a base population model for dealing with issues such as employment, care for
Adapted from Hartmut Bossel's "System Zoo 3 Simulation Models, Economy, Society, Development."

​Population model where the population is summarized in four age groups (children, parents, older people, old people). Used as a base population model for dealing with issues such as employment, care for the elderly, pensions dynamics, etc.
A simple budget planning system.  What additional complexities can you add?
A simple budget planning system.  What additional complexities can you add?
Investigations into the relationships responsible for the success and failure of nations. This investigation was prompted after reading numerous references on the subject and perceiving that *Why Nations Fail: The Origins of Power, Prosperity, and Poverty* by Acemoglu and Robinson seem to make a gre
Investigations into the relationships responsible for the success and failure of nations. This investigation was prompted after reading numerous references on the subject and perceiving that *Why Nations Fail: The Origins of Power, Prosperity, and Poverty* by Acemoglu and Robinson seem to make a great deal of sense.
 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..

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..

Adapted from Hartmut Bossel's "System Zoo 3 Simulation Models, Economy, Society, Development."  ​Population model where the population is summarized in four age groups (children, parents, older people, old people). Used as a base population model for dealing with issues such as employment, care for
Adapted from Hartmut Bossel's "System Zoo 3 Simulation Models, Economy, Society, Development."

​Population model where the population is summarized in four age groups (children, parents, older people, old people). Used as a base population model for dealing with issues such as employment, care for the elderly, pensions dynamics, etc.
Based on the Market and Price simulation model in System Zoo 3. Used in the System Thinking section of Regenerative Economics.
Based on the Market and Price simulation model in System Zoo 3. Used in the System Thinking section of Regenerative Economics.
From Walrave ISDC2014  paper  Counteracting the success trap in publically owned corporations
From Walrave ISDC2014 paper Counteracting the success trap in publically owned corporations
Very simple causal loop diagram of a loan, which can be any loan. However, when the loan is a fixed amount, that needs to be repaid in x periods, you can cross out the 'taking out' arrow from debt to bank account.
Very simple causal loop diagram of a loan, which can be any loan. However, when the loan is a fixed amount, that needs to be repaid in x periods, you can cross out the 'taking out' arrow from debt to bank account.
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.