Computational Model Library

The Price Evolution with Expectations model provides the opportunity to explore the question of non-equilibrium market dynamics, and how and under which conditions an economic system converges to the classically defined economic equilibrium. To accomplish this, we bring together two points of view of the economy; the classical perspective of general equilibrium theory and an evolutionary perspective, in which the current development of the economic system determines the possibilities for further evolution.

The Price Evolution with Expectations model consists of a representative firm producing no profit but producing a single good, which we call sugar, and a representative household which provides labour to the firm and purchases sugar.The model explores the evolutionary dynamics whereby the firm does not initially know the household demand but eventually this demand and thus the correct price for sugar given the household’s optimal labour.

The model can be run in one of two ways; the first does not include money and the second uses money such that the firm and/or the household have an endowment that can be spent or saved. In either case, the household has preferences for leisure and consumption and a demand function relating sugar and price, and the firm has a production function and learns the household demand over a set number of time steps using either an endogenous or exogenous learning algorithm. The resulting equilibria, or fixed points of the system, may or may not match the classical economic equilibrium.

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.

Violence against women occurs predominantly in the family and domestic context. The COVID-19 pandemic led Brazil to recommend and, at times, impose social distancing, with the partial closure of economic activities, schools, and restrictions on events and public services. Preliminary evidence shows that intense co- existence increases domestic violence, while social distancing measures may have prevented access to public services and networks, information, and help. We propose an agent-based model (ABM), called VIDA, to illustrate and examine multi-causal factors that influence events that generate violence. A central part of the model is the multi-causal stress indicator, created as a probability trigger of domestic violence occurring within the family environment. Two experimental design tests were performed: (a) absence or presence of the deterrence system of domestic violence against women and measures to increase social distancing. VIDA presents comparative results for metropolitan regions and neighbourhoods considered in the experiments. Results suggest that social distancing measures, particularly those encouraging staying at home, may have increased domestic violence against women by about 10%. VIDA suggests further that more populated areas have comparatively fewer cases per hundred thousand women than less populous capitals or rural areas of urban concentrations. This paper contributes to the literature by formalising, to the best of our knowledge, the first model of domestic violence through agent-based modelling, using empirical detailed socioeconomic, demographic, educational, gender, and race data at the intraurban level (census sectors).

SESPES: socio-ecological systems and payment for ecosystem services model

Eulàlia Baulenas | Published Sun Dec 20 16:44:58 2020 | Last modified Sun Dec 20 18:43:41 2020

The purpose of this spatially-explicit agent-based model is to intervene in the debate about PES policy design, implementation and context. We use the case for a woodland-for-water payment for ecosystem services (PES) and model its implementation in a local area of Catalonia (NE Spain). The model is based on three sub-models. The structural contains four different designs of a PES policy. The social sub-model includes agent-based factors, by having four types of landowner categories managing or not the forests. This sub-model is based on behavioral studies and assumptions about reception and reaction to incentive policies from European-focused studies. The ecological sub-model is based on climate change data for the area. The output are the evolution of the ecological and social goals of the policy under different policy design scenarios. Our focus in Europe surges from the general context of land abandonment that many Mediterranean areas and Eastern countries are experiencing, and the growing interest from policy-makers and practitioners on the implementation of PES schemes to ameliorate this situation.

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.

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