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Abstract:
The actor-based system-dynamic approach to macroeconomic modeling is
illustrated for a simple model hierarchy consisting of a basic two-dimensional
model with several alternative three-dimensional extensions. The hierarchy
is based on an out-of-equilibrium approach: market clearing is not assumed,
supply is not equal to demand, and there exists a stock of unsold goods.
Depending on actor behaviour, the models exhibit stable exponential growth
or instabilities leading to oscillations or economic collapse. In most cases, the
simplicity and tractability of the models enables analytical solutions. The
examples serve as illustration of more realistic models developed within the
Multi Actor Dynamic Integrated Model System (MADIAMS) to assess the
long-term impacts of climate mitigation policies.
