Very basic stock-flow diagram of simple interest with table and graph output in interest, bank account and savings development per year. Initial deposit, interest rate, yearly deposit and withdrawal, and initial balance bank account can all be modified.
Very basic stock-flow diagram of simple interest with table and graph output in interest, bank account and savings development per year. Initial deposit, interest rate, yearly deposit and withdrawal, and initial balance bank account can all be modified.
Model-SIM from chapter 3 of Wynn Godley and Marc Lavoie's  Monetary Economics,  but with household debt added into the model.
Model-SIM from chapter 3 of Wynn Godley and Marc Lavoie's Monetary Economics, but with household debt added into the model.
Simple model used to assess the likely outcome of Revenue and Profit due to variability of purchase price, price impact on Units Sold, and Units Sold impact on Unit Cost.
Simple model used to assess the likely outcome of Revenue and Profit due to variability of purchase price, price impact on Units Sold, and Units Sold impact on Unit Cost.
How do we create a market where small self generated electricity is cost effetive.
How do we create a market where small self generated electricity is cost effetive.
Problemas  de Ratios  de   custos  fixos  diversos  multiprodutos
Problemas  de Ratios  de   custos  fixos  diversos  multiprodutos
Simulation of MTBF with controls   F(t) = 1 - e ^ -λt   Where    • F(t) is the probability of failure    • λ is the failure rate in 1/time unit (1/h, for example)   • t is the observed service life (h, for example)  The inverse curve is the trust time On the right the increase in failures brings its
Simulation of MTBF with controls

F(t) = 1 - e ^ -λt 
Where  
• F(t) is the probability of failure  
• λ is the failure rate in 1/time unit (1/h, for example) 
• t is the observed service life (h, for example)

The inverse curve is the trust time
On the right the increase in failures brings its inverse which is loss of trust and move into suspicion and lack of confidence.
This can be seen in strategic social applications with those who put economy before providing the priorities of the basic living infrastructures for all.

This applies to policies and strategic decisions as well as physical equipment.
A) Equipment wears out through friction and preventive maintenance can increase the useful lifetime, 
B) Policies/working practices/guidelines have to be updated to reflect changes in the external environment and eventually be replaced when for instance a population rises too large (constitutional changes are required to keep pace with evolution, e.g. the concepts of the ancient Greeks, 3000 years ago, who based their thoughts on a small population cannot be applied in 2013 except where populations can be contained into productive working communities with balanced profit and loss centers to ensure sustainability)

Early Life
If we follow the slope from the leftmost start to where it begins to flatten out this can be considered the first period. The first period is characterized by a decreasing failure rate. It is what occurs during the “early life” of a population of units. The weaker units fail leaving a population that is more rigorous.

Useful Life
The next period is the flat bottom portion of the graph. It is called the “useful life” period. Failures occur more in a random sequence during this time. It is difficult to predict which failure mode will occur, but the rate of failures is predictable. Notice the constant slope.  

Wearout
The third period begins at the point where the slope begins to increase and extends to the rightmost end of the graph. This is what happens when units become old and begin to fail at an increasing rate. It is called the “wearout” period. 
Very basic stock-flow diagram of simple interest with table and graph output in interest, bank account and savings development per year. Initial deposit, interest rate, yearly deposit and withdrawal, and initial balance bank account can all be modified.
Very basic stock-flow diagram of simple interest with table and graph output in interest, bank account and savings development per year. Initial deposit, interest rate, yearly deposit and withdrawal, and initial balance bank account can all be modified.
The simulation integrates or sums (INTEG) the Nj population, with a change of Delta N in each generation, starting with an initial value of 5. The equation for DeltaN is a version of  Nj+1 = Nj  + mu (1- Nj / Nmax ) Nj  the maximum population is set to be one million, and the growth rate constant mu
The simulation integrates or sums (INTEG) the Nj population, with a change of Delta N in each generation, starting with an initial value of 5.
The equation for DeltaN is a version of 
Nj+1 = Nj  + mu (1- Nj / Nmax ) Nj
the maximum population is set to be one million, and the growth rate constant mu = 3.
 
Nj: is the “number of items” in our current generation.

Delta Nj: is the “change in number of items” as we go from the present generation into the next generation. This is just the number of items born minus the number of items who have died.

mu: is the growth or birth rate parameter, similar to that in the exponential growth and decay model. However, as we extend our model it will no longer be the actual growth rate, but rather just a constant that tends to control the actual growth rate without being directly proportional to it.

F(Nj) = mu(1‐Nj/Nmax): is our model for the effective “growth rate”, a rate that decreases as the number of items approaches the maximum allowed by external factors such as food supply, disease or predation. (You can think of mu as the growth or birth rate in the absence of population pressure from other items.) We write this rate as F(Nj), which is a mathematical way of saying F is affected by the number of items, i.e., “F is a function of Nj”. It combines both growth and all the various environmental constraints on growth into a single function. This is a good approach to modeling; start with something that works (exponential growth) and then modify it incrementally, while still incorporating the working model.

Nj+1 = Nj + Delta Nj : This is a mathematical way to say, “The new number of items equals the old number of items plus the change in number of items”.

Nj/Nmax: is what fraction a population has reached of the maximum "carrying capacity" allowed by the external environment. We use this fraction to change the overall growth rate of the population. In the real world, as well as in our model, it is possible for a population to be greater than the maximum population (which is usually an average of many years), at least for a short period of time. This means that we can expect fluctuations in which Nj/Nmax is greater than 1.

This equation is a form of what is known as the logistic map or equation. It is a map because it "maps'' the population in one year into the population of the next year. It is "logistic'' in the military sense of supplying a population with its needs. It a nonlinear equation because it contains a term proportional to Nj^2 and not just Nj. The logistic map equation is also an example of discrete mathematics. It is discrete because the time variable j assumes just integer values, and consequently the variables Nj+1 and Nj do not change continuously into each other, as would a function N(t). In addition to the variables Nj and j, the equation also contains the two parameters mu, the growth rate, and Nmax, the maximum population. You can think of these as "constants'' whose values are determined from external sources and remain fixed as one year of items gets mapped into the next year. However, as part of viewing the computer as a laboratory in which to experiment, and as part of the scientific process, you should vary the parameters in order to explore how the model reacts to changes in them.
Causal loop diagram illustrating a variety of feedback loops influencing the price of oil.
Causal loop diagram illustrating a variety of feedback loops influencing the price of oil.
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 structure determines the net present value of a series representing the balances of a cash flow.  Usually using the functions time() and timestart() the determination of the discount factor presents error because of the unit "year" of the functions. an alternative was to use a converter and th
This structure determines the net present value of a series representing the balances of a cash flow.
Usually using the functions time() and timestart() the determination of the discount factor presents error because of the unit "year" of the functions. an alternative was to use a converter and thus deviate from the error.
 *scroll to bottom for user inputs*     FIRE_simulation  v1.0  20200618     A personal finance simulation to predict retirement date.       with some adjustable variables, and some probabilistic variables, you can run a simulation of 500 clones of yourself pre->post FIRE and see how many clones r
*scroll to bottom for user inputs*

FIRE_simulation
v1.0
20200618

A personal finance simulation to predict retirement date. 

with some adjustable variables, and some probabilistic variables, you can run a simulation of 500 clones of yourself pre->post FIRE and see how many clones retire at what years.

Some clones get lucky with the market and eg low child costs -> retire early.
Some clones get bad luck and take a few more years to retire!

can also track a clones assets, income, savings rate over time.

Also can use to stress-test (eg poor market returns), and goal seek (assets go to zero when i die. to retire earlier)

Top right are variables about me.
Top left are market variables.
bottom right are simulant/clone (output) info.

Middle 'folder' represents a clone of me.

some vars arent fixed, rather probabilities eg child costs being unknown, i have normally distributed it (my half of costs) around $12k pa and each clone of me gets a random cost on the dist for the simulation. I will add and update in next version

Sign up to insightmaker, click "clone insight" and build/adjust your own modelling. Or send feedback to phillip.balding@gmail.com


programming notes:
-market return years running consecutively not random.
-future years return FIRE rule
-cap_gains and pay_super flows can now be neg
-intro of super still seems too high, grows too much after 60
-rearrange user input variables

To do:
-get actual historical dividends
-goalseek to die with 0 assets -> minimise retirement age.
-year begin not integer?
-auto interpolation seems good.
-tidy the fucking model map mess
-fix child costs at initial random dist.
A model explaining the relationships between: an in-house advisory firm, multi-tied advisers, customers, in-house product providers, in-house sales support and business development initiatives.
A model explaining the relationships between: an in-house advisory firm, multi-tied advisers, customers, in-house product providers, in-house sales support and business development initiatives.
A model of lottery jackpots and their interactions with ticket sales and winnings
A model of lottery jackpots and their interactions with ticket sales and winnings