Agent-based macroeconomic scenarios
Households, firms and banks are modelled as agents to explore how a compound shock might propagate through jobs, credit and spending.
GCRI · Economic Development
Complex systems and agent-based modelling represent economies as many interacting agents whose behaviour produces aggregate outcomes. In this field they explore how shocks cascade, how policies interact and how outcomes can depend on history, as scenarios with assumptions visible.
Complex systems and agent-based modelling study systems whose behaviour emerges from interactions among many components. They help explain nonlinear dynamics, tipping points and collective behaviour. In economic development and development finance, complex systems approaches explore how interacting risks can produce sudden, systemic shifts. They support stress testing of policies against emergent behaviour. The canonical description is on the STEM Commons.
Households, firms and banks are modelled as agents to explore how a compound shock might propagate through jobs, credit and spending.
Models link public debt, bank balance sheets and borrowing costs to explore how stress in one can feed the others.
Combinations of policies, such as subsidies and transfers, are explored to see where they reinforce or offset each other.
Night lights, population density, marine heat and true-colour imagery over Africa, from NASA GIBS. Each layer carries its own date.
The interactive map needs JavaScript; the layer list and sources are below.
Layers 4
Activity and hazards, for this page
Keyboard, with the map focused
Hold Ctrl or ⌘ and scroll to zoom
Latest available
NASA GIBS / EOSDIS · ASTER GDEM (METI, NASA) · Blue Marble (NASA) · © OpenStreetMap contributors (ODbL) · Natural Earth
Loading the latest NASA imagery.
Drag to move. Ctrl or ⌘ and scroll, pinch or the buttons to zoom; hover for the values under the pointer; reset returns to the region.
Activity and hazards, framed on Africa.Satellite and model products as NASA publishes them, each with its own date. They are indicators, not assessments of any place.
Layers and dates
Datasets and records used by complex systems and agent-based modelling on this platform, with the role each plays and the label its values carry. Sources are listed in the source register.
| Data | Role | Label |
|---|---|---|
| Household and firm microdata | Agent calibration | ESTIMATED |
| Macroeconomic series | Validation targets | Published statistics |
| Financial statements | Balance sheets | REPORTED |
Two stocks, pressure and adaptive capacity, joined by a reinforcing growth loop, a delayed balancing response and damage when pressure outruns capacity; past the threshold the system can tip. Teaching model with stated illustrative values, not a prediction. The map on this page shows Africa; the model itself is not tied to a place.
Controls
Readouts
| Year | Pressure | Capacity | Perceived |
|---|---|---|---|
| 0 | 20.0 | 50.0 | 20.0 |
| 4 | 23.3 | 44.9 | 21.2 |
| 8 | 27.2 | 42.2 | 24.0 |
| 12 | 31.7 | 42.3 | 27.7 |
| 16 | 36.8 | 45.5 | 32.2 |
| 20 | 42.3 | 51.5 | 37.2 |
| 24 | 47.9 | 60.3 | 42.6 |
| 28 | 53.2 | 71.3 | 48.0 |
| 32 | 57.8 | 84.3 | 53.1 |
| 36 | 66.4 | 98.4 | 58.4 |
| 40 | 82.7 | 115.9 | 69.7 |
| 44 | 97.8 | 139.7 | 83.8 |
| 48 | 109.1 | 169.4 | 97.3 |
No observed data enters this model: it runs on the teaching values set by the controls, to be replaced with a programme's own evidence.
Across the six pillars, led by Nexus Consortium
Models are evaluated by matching multiple stylised facts and patterns at different scales. Sensitivity and robustness analysis test dependence on assumptions.
| Check | How it is done |
|---|---|
| Pattern validation | Models must reproduce several observed patterns, not one series |
| Sensitivity analysis | Key parameters are varied and the spread of outcomes reported |
| Comparison with simpler models | Results are compared with standard models before conclusions |
Many plausible models can reproduce the same patterns. Calibration and validation data are often limited.
Assembled from the Nexus Standards area profile Financial and economic risk standards: the hazards it names, the systems and sectors that carry the loss, the controls that dampen it and the data that observe it. Choose the components, pick an initiating hazard and step through the cascade. The Map view places the run on an example geography with open data. Every coupling weight is a stated assumption you can change. A teaching model, not a forecast, an assessment or a certification. To model a place of your own choosing, open the full System Builder.
Hazards
Systems and couplings
Controls
NS-0 Constitution and principlesNS-3 Risk record UNIs (grammar, legacy crosswalk, allocation authority)NS-9 Contextual UNIs (deployments, instances, programme instances)NS-10 Policies and clauses (machine-readable obligations: definition, binding, evaluation and enforcement)NS-11 Verification and monitoring (evidence, attestations, zero-trust conformance observation)NS-14 Conformance and crosswalk to external standardsNRS-H59 Hazard family: Economic shocks and governance failure (NHS-1 soc.economic)NRS-H113 Hazard family: Financial-system fragility (NHS-1 soc.financial-system)NRS-H118 Hazard family: Organised crime and illicit economies (NHS-1 soc.crime)NRS-H114 Hazard family: Macroeconomic and fiscal shocks (NHS-1 soc.macro-fiscal)NRS-H61 Hazard family: Cascading failure (NHS-1 sys.cascade)NRS-U27 Universe platform profile: Sovereign Capital NexusObservation
Example geography
The model, its assumptions, its data and its uncertainty, in the form a scientist or engineer would check. Structures follow published methods. The values drawn are illustrative, not findings.
The couplings between the systems in complex systems economics: signs of influence, a reinforcing and a balancing loop, and cross-links where stress jumps.
Systems Science and Modelling stewards complex systems and agent-based modelling for the Consortium and reviews how it is applied across platforms.
Reports is the Consortium's quarterly publication. What you know about this subject can become evidence, a case or a correction in the next edition, credited to you and published under CC BY 4.0 where it is your own work.
Never send personal data, sensitive infrastructure detail or anything you have no right to share. A contribution is reviewed before use; sending it confers no authorship or editorial rights, and sponsorship never buys a finding.
Information and enquiries are open today. An enquiry receives a reference and names the next step; applications, payments, compute allocations and registrations open only when their team, terms and review capacity exist.
Maps, data and figures on this site are shown for context and general information. They are not advice, forecasts or warnings; the limits of the information are set out in the Disclaimers and Data Notices.
This site uses only strictly necessary cookies to work and to remember your privacy choices. Nothing loads from other companies, and we never sell or share your personal information.
This site uses only strictly necessary cookies to work and to remember your privacy choices. Nothing loads from other companies, and we never sell or share your personal information. We run no advertising. You can review your choices at any time through Privacy choices at the foot of every page.