Research Description:Ross is developing a system dynamics (SD) model based on the comprehensive wealth accounting framework developed by the UN. The framework seeks to provide a more comprehensive measure of a nation's economic well-being, by accounting for natural and human capital, in contrast to more traditional measures like GDP. However, the current framework can only evaluate past time horizons to test for sustainability (defined as a positive per capita growth rate in the weighted sum of all forms of productive capital). Thus, the SD model will build on this framework by quantifying the interdependencies between different forms of capital such that simulation experiments of long-term economic performance can be tested. This prospective analysis will allow policymakers to anticipate future bottlenecks and tradeoffs in the macroeconomic system in order to better inform decisions today. |