Economy Models
These models and simulations have been tagged “Economy”.
These models and simulations have been tagged “Economy”.
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.
Model description:
This model is designed to simulate the Covid-19 outbreak in Burnie, Tasmania by estimating several factors such as exposed population, infection rate, testing rate, recovery rate, death rate and immunity loss. The model also simulates the measures implemented by the government which will impact on the local infection and economy.
Assumption:
Government policies will reduce the mobility of the population as well as the infection. In addition, economic activities in the tourism and hospitality industry will suffer negative influences from the government measures. However, essential businesses like supermarkets will benefit from the health policies on the contrary.
Variables:
Infection rate, recovery rate, death rate, testing rate are the variables to the cases of Covid-19. On the other hand, the number of cases is also a variable to the government policies, which directly influences the number of exposed.
The GDP is dependent on the variables of economic activities. Nonetheless, the government’s lockdown measure has also become the variable to the economic activities.
Interesting insights:
Government policies are effective to curb infection by reducing the number of exposed when the case number is greater than 10. The economy becomes stagnant when the case spikes up but it climbs up again when the number of cases is under control.
Description:
Model of Covid-19 outbreak in Burnie, Tasmania
This model was designed from the SIR model(susceptible, infected, recovered) to determine the effect of the covid-19 outbreak on economic outcomes via government policy.
Assumptions:
The government policy is triggered when the
number of infected is more than ten.
The government policies will take a negative effect on Covid-19 outbreaks and the financial system.
Parameters:
We set some fixed and adjusted variables.
Covid-19 outbreak's parameter
Fixed parameter: Background disease.
Adjusted parameters: Infection rate, recovery rate. Immunity loss rate can be changed from vaccination rate.
Government policy's parameters
Adjusted parameters: Testing rate(from 0.15 to 0.95), vaccination rate(from 0.3 to 1), travel ban(from 0 to 0.9), social distancing(from 0.1 to 0.8), Quarantine(from 0.1 to 0.9)
Economic's parameters
Fixed parameter: Tourism
Adjusted parameter: Economic growth rate(from 0.3 to 0.5)
Interesting insight
An increased vaccination rate and testing rate will decrease the number of infected cases and have a little more negative effect on the economic system. However, the financial system still needs a long time to recover in both cases.
INTRODUCTION
This is a balanced loop model that demonstrates how COVID 19 outbreak in Burnie and the response of the government (e.g. by enforcing health policies: Lockdown; quarantine, non-necessary business closure; border closure) affect the local economy. This model has 13 positive loops and seven negative loops. Government response is dependent on the number of reported COVID-19 cases which in turn thought to be dependent on the testing rates less those who recovered from COVID 19 and dead. Economic activity is dependent on the economic growth rate, increased in online shopping, increased in unemployment, number of people who do not obey the rules, COVID 19 cases and health policies.
ASSUMPTIONS
· Both infection and economic growth is reduced by enforcing government policies
· However, the negative effect of government policies is reduced by the number of people who do not obey government health policies
· Govt policies are enforced when the reported COVID-19 case are 10 or greater.
· Number of COVID cases reported is dependent on the testing rates less those who recovered and dead.
· The higher number of COVID-19 cases have a
negative effect on local economy. This phenomena is known as negative signalling.
· Government policies have a negative effect on economic activity because health policies limit both social and economic activities which directly or indirectly affect the economy in Burnie .
· This negative effect is somewhat reduced by the increase in online shopping and the number of people who do not obey heath rules.
INTERESTING INSIGHTS
The test ratings seem to play a vital role in controlling COVID-19 outbreak. Higher Rates of COVID testings decrease the number of COVID 19 deaths and number of infected. This is because higher rates of testing accelerate the government involvement (as the government intervention is triggered earlier, 10 COVID cases mark is reached earlier). Delaying the government intervention by reducing the COVID testing rates increases the death rates and number of infected.
Increased testing rates allow the figures (deaths, susceptible, infected) to reach a plateau quickly.
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%.
