The PUBLIC sector

The variables

Vensim name Name Used variables Used parameters Variables using it Initial value Equation
Change in TFP 1/y CTFP RTA TFPEE5TA TFPEE5TA \(\mathtt{CTFP}\left(t\right)=\mathtt{RTA}\left(t\right)\cdot\mathtt{TFPEE5TA}\left(t\right)\)
Domestic Rate of Technological Advance 1/y DRTA SC SCROTA SC1980 DROTA1980 EDROTA2022 RTA \(\mathtt{DRTA}\left(t\right)=\mathtt{DROTA1980}+\left(1+\mathtt{SCROTA}\cdot\left(-1+\frac{\mathtt{SC}\left(t\right)}{\mathtt{SC1980}}\right)\right)\cdot\mathtt{ifelse}\left(\left(t>2000\right),\mathtt{EDROTA2022},0\right)\)
Extra Cost of TAs From 2022 GDollar/y ECTAF2022 CTA CTA2022 ETTAF2022 ECTAGDP \(\mathtt{ECTAF2022}\left(t\right)=\mathtt{max}\left(0,-\mathtt{CTA2022}+\mathtt{CTA}\left(t\right)\right)\)
Extra Cost of TAs as share of GDP (1) ECTAGDP ECTAF2022 GDP PLUA \(\mathtt{ECTAGDP}\left(t\right)=\frac{\mathtt{ECTAF2022}\left(t\right)}{\mathtt{GDP}\left(t\right)}\)
Govmnt Spending as Share of GDP GSSGDP GDP GS \(\mathtt{GSSGDP}\left(t\right)=\frac{\mathtt{GS}\left(t\right)}{\mathtt{GDP}\left(t\right)}\)
Infrastructure Purchases Ratio y IPR CPUS GPU PPP \(\mathtt{IPR}\left(t\right)=\frac{\mathtt{CPUS}\left(t\right)}{\mathtt{GPU}\left(t\right)}\)
Imported ROTA 1/y IROTA GDPP GDPTL MIROTA2022 RTA \(\mathtt{IROTA}\left(t\right)=\mathtt{ifelse}\left(\left(t>2000\right),\mathtt{max}\left(0,\mathtt{MIROTA2022}\cdot\left(2+\frac{-\mathtt{GDPP}\left(t\right)}{\mathtt{GDPTL}}\right)\right),0\right)\)
Indicated TFP (1) ITFP OWTFP TFPEE5TA ECR \(\mathtt{ITFP}\left(t\right)=\mathtt{OWTFP}\left(t\right)\cdot\mathtt{TFPEE5TA}\left(t\right)\)
OWeoTFP OWTFP OW OWETFP OW2022 ITFP \(\mathtt{OWTFP}\left(t\right)=\mathtt{ifelse}\left(\left(t>2000\right),1+\mathtt{OWETFP}\cdot\left(-1+\frac{\mathtt{OW}\left(t\right)}{\mathtt{OW2022}}\right),1\right)\)
Productivity Loss from Unprofitable Activity (1) PLUA ECTAGDP FUATA RTFPUA \(\mathtt{PLUA}\left(t\right)=\mathtt{FUATA}\cdot\mathtt{ECTAGDP}\left(t\right)\)
Productivity of Public Purchases (1) PPP IPR IPRVPSS IPR1980 VPSS \(\mathtt{PPP}\left(t\right)=\mathtt{max}\left(0,1+\mathtt{IPRVPSS}\cdot\log\left(\frac{\mathtt{IPR}\left(t\right)}{\mathtt{IPR1980}}\right)\right)\)
Public SErvices per Person kdollar/p/y PSEP POP VPSS \(\mathtt{PSEP}\left(t\right)=\frac{\mathtt{VPSS}\left(t\right)}{\mathtt{POP}\left(t\right)}\)
Public Spending per Person kDollar/p/y PSP POP GS AWBPS PSSGDP \(\mathtt{PSP}\left(t\right)=\frac{\mathtt{GS}\left(t\right)}{\mathtt{POP}\left(t\right)}\)
Reduction in ROTA from Inequality 1/y RROTAI INEQI IIEEROTA RTA \(\mathtt{RROTAI}\left(t\right)=\mathtt{min}\left(1,1+\mathtt{IIEEROTA}\cdot\left(-1+\mathtt{INEQI}\left(t\right)\right)\right)\)
Rate of Technological Advance 1/y RTA DRTA IROTA RROTAI CTFP \(\mathtt{RTA}\left(t\right)=\mathtt{DRTA}\left(t\right)\cdot\mathtt{RROTAI}\left(t\right)+\mathtt{IROTA}\left(t\right)\)
Reduction in TFP from Unprofitable Activity (1) RTFPUA RTFPUA PLUA CTPIS IPT RTFPUA TFPIE5TA 0.0 \(\frac{\mathrm{d}\mathtt{RTFPUA}\left(t\right)}{\mathrm{d}t}=\frac{-\mathtt{RTFPUA}\left(t\right)+\mathtt{PLUA}\left(t\right)}{\mathtt{CTPIS}+\mathtt{IPT}}\)
State Capacity (fraction of GDP) SC GDP VPSS DRTA \(\mathtt{SC}\left(t\right)=\frac{\mathtt{VPSS}\left(t\right)}{\mathtt{GDP}\left(t\right)}\)
TFP Excluding Effect of 5TAs (1) TFPEE5TA CTFP CTFP ITFP TFPIE5TA 1.0 \(\frac{\mathrm{d}\mathtt{TFPEE5TA}\left(t\right)}{\mathrm{d}t}=\mathtt{CTFP}\left(t\right)\)
TFP Including Effect of 5TAs (1) TFPIE5TA RTFPUA TFPEE5TA \(\mathtt{TFPIE5TA}\left(t\right)=\left(1-\mathtt{RTFPUA}\left(t\right)\right)\cdot\mathtt{TFPEE5TA}\left(t\right)\)
Value of Public Services Supplied GDollar/y VPSS PPP GPU PSEP SC \(\mathtt{VPSS}\left(t\right)=\mathtt{GPU}\left(t\right)\cdot\mathtt{PPP}\left(t\right)\)

The parameters

Vensim name Name Is used by Value
Cost of TAs in 2022 GDollar/y CTA2022 ECTAF2022 9145.0
Construction time PIS y CTPIS RTFPUA 1.5
Domestic ROTA in 1980 1/y DROTA1980 DRTA 0.01
Extra Domestic ROTA in 2022 1/y EDROTA2022 DRTA 0.003
Fraction Unprofitable Activity in TAs FUATA PLUA 0.3
GDPpp of Technology Leader kDollar/p/k GDPTL IROTA 15.0
sIIEeoROTA<0: Inequality Index Effect on ROTA IIEEROTA RROTAI -0.1
Infrastructure Purchases Ratio in 1980 y IPR1980 PPP 1.2
sIPReoVPSS>0: Infrastructure Purchase Ratio effect on Value of Pubblic Services Supplied IPRVPSS PPP 1.0
Investment planning time y IPT RTFPUA 1.0
Max Imported ROTA from 2022 1/y MIROTA2022 IROTA 0.0
Observed Warming in 2022 deg C OW2022 OWTFP 1.35
sOWeoTFP<0: Observed Warming Effect on Total Factor Productivity OWETFP OWTFP -0.1
State Capacity in 1980 (fraction of GDP) SC1980 DRTA 0.3
sSCeoROTA>0: State Capacity effect on Rate Of Technological Advance SCROTA DRTA 0.5