Computational Model Library

The purpose of the model is to explore the influence of the design of circular business models (CBMs) on CBM viability. The model represents an Industrial Symbiosis Network (ISN) in which a processor uses the organic waste from suppliers to produce biogas and nutrient rich digestate for local reuse. CBM viability is expressed as value captured (e.g., cash flow/tonne waste/agent) and the survival of the network over time (shown in the interface).

In the model, the value captured is calculated relative to the initial state, using incineration costs as a benchmark. Moderating variables are interactions with the waste incinerator and actor behaviour factors. Actors may leave the network when the waste supply for local production is too low, or when personal economic benefits are too low. When the processor decides to leave, the network fails. Theory of planned behaviour can be used to include agent behaviour in the simulations.

Peer reviewed A Macroeconomic Model of a Closed Economy

Ian Stuart | Published Sat May 8 15:22:16 2021 | Last modified Wed Jun 23 14:33:37 2021

This model/program presents a “three industry model” that may be particularly useful for macroeconomic simulations. The main purpose of this program is to demonstrate a mechanism in which the relative share of labor shifts between industries.

Care has been taken so that it is written in a self-documenting way so that it may be useful to anyone that might build from it or use it as an example.

This model is not intended to match a specific economy (and is not calibrated to do so) but its particular minimalist implementation may be useful for future research/development.

Peer reviewed Industrial Symbiosis Network implementation ABM

Kasper Pieter Hendrik Lange Gijsbert Korevaar Igor Nikolic Paulien Herder | Published Tue Dec 1 10:34:25 2020 | Last modified Wed Jun 16 09:24:05 2021

The purpose of the model is to explore the influence of actor behaviour, combined with environment and business model design, on the survival rates of Industrial Symbiosis Networks (ISN), and the cash flows of the agents. We define an ISN to be robust, when it is able to run for 10 years, without falling apart due to leaving agents.

The model simulates the implementation of local waste exchange collaborations for compost production, through the ISN implementation stages of awareness, planning, negotiation, implementation, and evaluation.

One central firm plays the role of waste processor in a local composting initiative. This firm negotiates with other firms to become a supplier of their organic residual streams. The waste suppliers in the model can decide to join the initiative, or to have the waste brought to the external waste incinerator. The focal point of the model are the company-level interactions during the implementation or ending of synergies.

Knowledge Based Economy (KBE) is an artificial economy where firms placed in geographical space develop original knowledge, imitate one another and eventually recombine pieces of knowledge. In KBE, consumer value arises from the capability of certain pieces of knowledge to bridge between existing items (e.g., Steve Jobs illustrated the first smartphone explaining that you could make a call with it, but also listen to music and navigate the Internet). Since KBE includes a mechanism for the generation of value, it works without utility functions and does not need to model market exchanges.

The integrated and spatially-explicit ABM, called DIReC (Demography, Industry and Residential Choice), has been developed for Aberdeen City and the surrounding Aberdeenshire (Ge, Polhill, Craig, & Liu, 2018). The model includes demographic (individual and household) models, housing infrastructure and occupancy, neighbourhood quality and evolution, employment and labour market, business relocation, industrial structure, income distribution and macroeconomic indicators. DIReC includes a detailed spatial housing model, basing preference models on house attributes and multi-dimensional neighbourhood qualities (education, crime, employment etc.).
The dynamic ABM simulates the interactions between individuals, households, the labour market, businesses and services, neighbourhoods and economic structures. It is empirically grounded using multiple data sources, such as income and gender-age distribution across industries, neighbourhood attributes, business locations, and housing transactions. It has been used to study the impact of economic shocks and structural changes, such as the crash of oil price in 2014 (the Aberdeen economy heavily relies on the gas and oil sector) and the city’s transition from resource-based to a green economy (Ge, Polhill, Craig, & Liu, 2018).

Policymakers decide on alternative policies facing restricted budgets and uncertain, ever-changing future. Designing housing policies is further difficult giving the heterogeneous characteristics of properties themselves and the intricacy of housing markets and the spatial context of cities. We propose PolicySpace2 (PS2) as an adapted and extended version of the open source PolicySpace agent-based model. PS2 is a computer simulation that relies on empirically detailed spatial data to model real estate, along with labor, credit and goods and services markets. Interaction among workers, firms, a bank, households and municipalities follow the literature benchmarks to integrate economic, spatial and transport literature. PS2 is applied to a comparison among three competing municipal housing policies aimed at alleviating poverty: (a) property acquisition and distribution, (b) rental vouchers and (c) monetary aid. Within the model context, the monetary aid, that is, a smaller amounts of help for a larger number of households, makes the economy perform better in terms of production, consumption, reduction of inequality and maintenance of financial duties. PS2 as such is also a framework that may be further adapted to a number of related research questions.

Peer reviewed BAM: The Bottom-up Adaptive Macroeconomics Model

Alejandro Platas López Alejandro Guerra-Hernández | Published Tue Jan 14 17:04:32 2020 | Last modified Sun Jul 26 00:26:21 2020

Overview

Purpose

Modeling an economy with stable macro signals, that works as a benchmark for studying the effects of the agent activities, e.g. extortion, at the service of the elaboration of public policies..

Peer reviewed BAMERS: Macroeconomic effect of extortion

Alejandro Platas López Alejandro Guerra-Hernández | Published Mon Mar 23 16:32:53 2020 | Last modified Sun Jul 26 00:20:45 2020

Inspired by the European project called GLODERS that thoroughly analyzed the dynamics of extortive systems, Bottom-up Adaptive Macroeconomics with Extortion (BAMERS) is a model to study the effect of extortion on macroeconomic aggregates through simulation. This methodology is adequate to cope with the scarce data associated to the hidden nature of extortion, which difficults analytical approaches. As a first approximation, a generic economy with healthy macroeconomics signals is modeled and validated, i.e., moderate inflation, as well as a reasonable unemployment rate are warranteed. Such economy is used to study the effect of extortion in such signals. It is worth mentioning that, as far as is known, there is no work that analyzes the effects of extortion on macroeconomic indicators from an agent-based perspective. Our results show that there is significant effects on some macroeconomics indicators, in particular, propensity to consume has a direct linear relationship with extortion, indicating that people become poorer, which impacts both the Gini Index and inflation. The GDP shows a marked contraction with the slightest presence of extortion in the economic system.

After a little work experience, we realize that different kinds of people prefer different work environments: some enjoy a fast-paced challenge; some want to get by; and, others want to show off.

From that experience, we also realize that different kinds of people affect their work environments differently: some increase the pace; some slow it down; and, others make it about themselves.

This model concerns how three different kinds of people affect their work environment and how that work environment affects them in return. The model explores how this circular relation between people’s preferences and their environment creates patterns of association and performance over time.

System Narrative
How do rebel groups control territory and engage with the local economy during civil war? Charles Tilly’s seminal War and State Making as Organized Crime (1985) posits that the process of waging war and providing governance resembles that of a protection racket, in which aspiring governing groups will extort local populations in order to gain power, and civilians or businesses will pay in order to ensure their own protection. As civil war research increasingly probes the mechanisms that fuel local disputes and the origination of violence, we develop an agent-based simulation model to explore the economic relationship of rebel groups with local populations, using extortion racket interactions to explain the dynamics of rebel fighting, their impact on the economy, and the importance of their economic base of support. This analysis provides insights for understanding the causes and byproducts of rebel competition in present-day conflicts, such as the cases of South Sudan, Afghanistan, and Somalia.

Model Description
The model defines two object types: RebelGroup and Enterprise. A RebelGroup is a group that competes for power in a system of anarchy, in which there is effectively no government control. An Enterprise is a local civilian-level actor that conducts business in this environment, whose objective is to make a profit. In this system, a RebelGroup may choose to extort money from Enterprises in order to support its fighting efforts. It can extract payments from an Enterprise, which fears for its safety if it does not pay. This adds some amount of money to the RebelGroup’s resources, and they can return to extort the same Enterprise again. The RebelGroup can also choose to loot the Enterprise instead. This results in gaining all of the Enterprise wealth, but prompts the individual Enterprise to flee, or leave the model. This reduces the available pool of Enterprises available to the RebelGroup for extortion. Following these interactions the RebelGroup can choose to AllocateWealth, or pay its rebel fighters. Depending on the value of its available resources, it can add more rebels or expel some of those which it already has, changing its size. It can also choose to expand over new territory, or effectively increase its number of potential extorting Enterprises. As a response to these dynamics, an Enterprise can choose to Report expansion to another RebelGroup, which results in fighting between the two groups. This system shows how, faced with economic choices, RebelGroups and Enterprises make decisions in war that impact conflict and violence outcomes.

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