ABMSIM Run Exploratory

Parameters

Population

  • Government Agent = 1
  • Producer Agents = 100
  • Consumer Agents = 110

Structural unemployment is set at nine percent of the consumer population.

Stimulus Period 1 (1960 - 2019)

USA Real-world total managed expenditure (sum to annual) data source starting 1960, ending 2018.

U.S. Bureau of Economic Analysis, Government total expenditures [W068RCQ027SBEA], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/W068RCQ027SBEA.

Flat Rate Taxation

Set at 37% of all consumer agent income.


Stimulus Period 2 (2020 - 2050)

The year is 2020: Government establishes Regional Improvement Agents (RIAs), formerly known as producer agents.

Governance Mechanisms

  • Government agent funding of RIAs will increase at 4% per annum (in every model iteration that follows 2019).
  • RIAs will purchase non-financial assets only.
  • Marginal rate taxation will apply to all government expenditures flowing though RIAs.
  • Securitisation of 'additional' RIA project financing must equal in amount private finance purchasing of 0% coupon RIA bonds made available by government. This is, in effect, a tax payment in advance.

Marginal Rate Taxation

A 'historical average wage' is calculated in each iteration. The 'historical average wage' is used in the current iteration to apply marginal rate taxation.

Brackets:
  • Tax Bracket 0: No tax on a wage amount up to the first 50% of the historical average wage.
  • Tax Bracket 1: Pay 60% tax on any remaining wage amount that is between 50% and 100% of the historical average wage.
  • Tax Bracket 2: Pay 70% tax on any remaining wage amount that exceeds 100% of the historical average wage.
Taxation Comparison

Model Iteration Historical Average Wage: 36253.103 (Previous iteration).

  • Consumer agent 5 is paid 40235.84. A flat rate tax of 14887.26 would have been returned. Under marginal rate tax, 13663.85 is returned.
  • Consumer agent 10 is paid 24380.53. A flat rate tax of 9020.80 would have been returned. Under marginal rate tax, 3752.39 is returned.
  • Consumer agent 8 is paid 62032.38. A flat rate tax of 22951.98 would have been returned. Under the marginal rate tax, 28921.42 is returned.
Consumer Agent 8 Marginal Tax Return Breakdown

50% of historical average wage amount at iteration 6: (36253.103 / 2) = 18126.55

  • No tax on wage amount up to the first 50% of the historical average wage amount.
  • Tax on wage amount that is between 50% and 100% of the historical average wage amount (18126.55 * 60%) = 10875.93
  • Tax on wage amount that exceeds 100% of the historical average wage amount ((62032.38 - 36253.10) * 70%) = 18045.49

Consumption function

  • Proportion of disposable income: 60%
  • Proportion of (agent wealth) at the opening of the period (quarter): 40%

Output

Plotly Chart Studio

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Money Supply Velocity

Money Supply

Fiscal Balance

Fiscal Balance

Marginal Taxation Supply

This is the total payments returned to the government agent by consumer agents since the inception of marginal taxation brackets.

Marginal Taxation Supply Curve

Marginal Taxation Supply

Consumer Rating

Consumer Rating

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