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Peer reviewed PolicySpace2: modeling markets and endogenous public policies

B Furtado | Published Thursday, February 25, 2021 | Last modified Friday, January 14, 2022

Policymakers decide on alternative policies facing restricted budgets and uncertain future. Designing public policies is further difficult due to the need to decide on priorities and handle effects across policies. Housing policies, specifically, involve 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 scholarship. PS2 is applied to a comparison among three competing public policies aimed at reducing inequality and alleviating poverty: (a) house acquisition by the government and distribution to lower income households, (b) rental vouchers, and (c) monetary aid. Within the model context, the monetary aid, that is, 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.

The goal of the AG-Innovation agent-based model is to explore and compare the effects of two alternative mechanisms of innovation development and diffusion (exogenous, linear and endogenous, non-linear) on emergent properties of food and income distribution and adoption rates of different innovations. The model also assesses the range of conditions under which these two alternative mechanisms would be effective in improving food security and income inequality outcomes. Our modelling questions were: i) How do cross-scalar social-ecological interactions within agricultural innovation systems affect system outcomes of food security and income inequality? ii) Do foreign aid-driven exogenous innovation perpetuate income inequality and food insecurity and if so, under which conditions? iii) Do community-driven endogenous innovations improve food security and income inequality and if so, under which conditions? The Ag-Innovation model is intended to serve as a thinking tool for for the development and testing of hypotheses, generating an understanding of the behavior of agricultural innovation systems, and identifying conditions under which alternated innovation mechanisms would improve food security and income inequality outcomes.

The purpose of the model is to better understand, how different factors for human residential choices affect the city’s segregation pattern. Therefore, a Schelling (1971) model was extended to include ethnicity, income, and affordability and applied to the city of Salzburg. So far, only a few studies have tried to explore the effect of multiple factors on the residential pattern (Sahasranaman & Jensen, 2016, 2018; Yin, 2009). Thereby, models using multiple factors can produce more realistic results (Benenson et al., 2002). This model and the corresponding thesis aim to fill that gap.

FIBE represents a simple fishery model. Fish that reproduce and fisher with different fishing styles that fish as their main source of income. The aim of the model is to reflect the different fishing behaviours as described and observed in the (Swedish) Baltic Sea fishery and explore the consequences of different approximations of human/fisher behaviour in under different environmental and managerial scenarios.

The overarching aim is to advance the incorporation and understanding of human behaviour (diversity) in fisheries research and management. In particular focusing on insights from social (fishery) science of fisher behaviour.

This model was created to investigate the potential impacts of large-scale recreational and transport-related physical activity promotion strategies on six United Nations Sustainable Development Goals (SDGs) related outcomes—road traffic deaths (SDG 3), transportation mode share (SDG 9), convenient access to public transport, levels of fine particulate matter, and access to public open spaces (SDG 11), and levels of carbon dioxide emissions (SDG 13)—in three cities designed as abstract representations of common city types in high-, middle-, and low-income countries.

The model is suitable to investigate the effects of different characteristics of apprenticeship programmes both in historical and contemporary societies. The model is built considering five societies, using an agent-based simulation model, we identified six main characteristics which impact the success of an apprenticeship programme in a society, which we measured by considering three parameters, namely the number of skilled agents produced by the apprenticeships, programme completion, and the contribution of programmes in the Gross Domestic Income (GDI) of the society. We investigate different definitions for success of an apprenticeship and some hypothetical societies to test some common beliefs about apprenticeships performance. The model also shows the number of unemployed agents given their work-based skills, wages, and the number of small and large companies who participate in training agents. The model enables exploring the impact of parameters, such as initial wages and the number of training years, along with the stated policies on the system.

The Simulating Agroforestry Adoption in Rural Indonesia (SAFARI) model aims at exploring the adoption of illipe rubber agroforestry systems by farming households in the case study region in rural Indonesia. Thereby, the ABM simulates the interdependencies of agroforestry systems and local livelihoods, income, land use, biodiversity, and carbon fixation. The model contrasts development paths without agroforestry (business as usual (BAU) scenario), corresponding to a scenario where the government promotes rubber monoculture, with the introduction of illipe rubber agroforestry systems (IRA scenario) as an alternative. It aims to support policy-makers to assess the potential of IRA over larger temporal and spatial scales.

The SMASH model is an agent-based model of rural smallholder households. It models households’ evolving income and wealth, which they earn through crop sales. Wealth is carried in the form of livestock, which are grazed on an external rangeland (exogenous) and can be bought/sold as investment/coping mechanisms. The model includes a stylized representation of soil nutrient dynamics, modeling the inflows and outflows of organic and inorganic nitrogen from each household’s field.

The model has been applied to assess the resilience-enhancing effects of two different farm-level adaptation strategies: legume cover cropping and crop insurance. These two strategies interact with the model through different mechanims - legume cover cropping through ecological mechanisms and crop insurance through financial mechanisms. The model can be used to investigate the short- and long-term effects of these strategies, as well as how they may differently benefit different types of household.

The impacts of income inequality can be seen everywhere, regardless of the country or the level of economic development. According to the literature review, income inequality has negative impacts in economic, social, and political variables. Notwithstanding of how well or not countries have done in reducing income inequality, none have been able to reduce it to a Gini Coefficient level of 0.2 or less.
This is the promise that a novel approach called Counterbalance Economics (CBE) provides without the need of increased taxes.
Based on the simulation, introducing the CBE into the Australian, UK, US, Swiss or German economies would result in an overall GDP increase of under 1% however, the level of inequality would be reduced from an average of 0.33 down to an average of 0.08. A detailed explanation of how to use the model, software, and data dependencies along with all other requirements have been included as part of the info tab in the model.

RAGE models a stylized common property grazing system. Agents follow a certain behavioral type. The model allows analyzing how household behavior with respect to a social norm on pasture resting affects long-term social-ecological system dynamics.

Displaying 10 of 50 results income clear

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