Index Sales Econpac Banking Prodsale Tanksale Econuse Agrprice Foryield Envuse Ireland Rotation Buypower Moneygro New Zealand Macroec Stworld Develop Intecon People

## Economic Development of a Nation

#### Description:

Every nation has a different setof resources which can nurture its economic development, affecting its patterns and rates of growth. The state of a nation is indicated by four storages within the system: assets, population, money on hand and debt to outsiders. When a typical simulation is run, these variables are plotted, as you can see in the graph.

#### Examples:

The hundreds of states and nations of the world are examples. Some have large nonrenewable reserves and less renewable inputs. Some coutries received massive investments and have large debts. Some countries had slow immigration of people and their information. The effects of differences in resources can be studied in this model.

#### Variables:

A = assets
N = population
M = money on hand
D = debt to outsiders
F = reserves

#### Equations:

R = I0/(1 + K1 + K0*A*N)
DF = -N8*F*A
DN = K7*A*N - K8*N - N6*N*N - K9*N - N1*A*NE - N2*R*A*N
DA = K6*M/P3 - K5*A*N - K4*A + N7*F*A + K3*R + K2*R*A *N
DM = IV + P1*N3*R + P2*N4**R*A*N - K6*M - N5*M*D - N7*D
DD = IV - N5*M*D

#### Simulation:

The graph shows the changes of M(red),A (green), N (magenta), D(yellow) and F(blue) over a time period.
Source code: Develop.java

#### "What if" Experiments:

• What is the effect of rising prices outside imports relative to prices of exports? Double P3.
• What is the effect of isolation from trade with all resources used at home, with no money to buy outside goods and services? Set P1 and P2 to zero.