Integration of an Economy Under Imperfect Competition With a Twelve-Cell Ecological Model (99 pp, 964 KB) (EPA/600/R-06/046) July 2006
This report documents the current research on developing a generalized mathematical model depicting an economic, ecological, and social system with the goal of making it available to the scientific community. The model is preliminary; it has not been tested or fully explored.
The model is intended to represent the first steps in combining the basic dynamic elements of an ecosystem functioning with a human society and an economy in a closed system with a nonlimiting supply of energy. The model is based on flows of mass between system compartments, while the total mass is conserved.
In this preliminary model, optimizing economic agents (firms and households) interact in specific markets with an ecological system consisting of resource pools and several domesticated and wild species. The result is an interdependent system that attempts to model macroeconomic variables based on underlying property rights and environmental stocks and flows.
The report contains four chapters and four appendices:
This report covers work done from March 3, 2004, to August 15, 2005. The work was completed February 28, 2006.
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