Tax Compliance and Public Goods Provision -- An Agent-based Econophysics Approach

We calculate the dynamics of tax evasion within a multi-agent econophysics model which is adopted from the theory of magnetism and previously has been shown to capture the main characteristics from agent-based based models which build on the standard Allingham and Sandmo approach. In particular, we implement a feedback of public goods provision on the decision-making of selfish agents which aim to pursue their self interest. Our results imply that such a feedback enhances the moral attitude of selfish agents thus reducing the percentage of tax evasion. Two parameters govern the behavior of selfish agents, (i) the rate of adaption to changes in public goods provision and (ii) the threshold of perception of public goods provision. Furtheron we analyze the tax evasion dynamics for different agent co mpositions and under the feedback of public goods provision. We conclude that policymakers may enhance tax compliance behavior via the threshold of perception by means of targeted public relations.Comment: 28 pages, 3 figures, accepted for publication in the Central European Journal of Economic Modelling and Econometric

French Roadmap for complex Systems 2008-2009

This second issue of the French Complex Systems Roadmap is the outcome of the Entretiens de Cargese 2008, an interdisciplinary brainstorming session organized over one week in 2008, jointly by RNSC, ISC-PIF and IXXI. It capitalizes on the first roadmap and gathers contributions of more than 70 scientists from major French institutions. The aim of this roadmap is to foster the coordination of the complex systems community on focused topics and questions, as well as to present contributions and challenges in the complex systems sciences and complexity science to the public, political and industrial spheres

Reviewing agent-based modelling of socio-ecosystems: a methodology for the analysis of climate change adaptation and sustainability

The integrated - environmental, economic and social - analysis of climate change calls for a paradigm shift as it is fundamentally a problem of complex, bottom-up and multi-agent human behaviour. There is a growing awareness that global environmental change dynamics and the related socio-economic implications involve a degree of complexity that requires an innovative modelling of combined social and ecological systems. Climate change policy can no longer be addressed separately from a broader context of adaptation and sustainability strategies. A vast body of literature on agent-based modelling (ABM) shows its potential to couple social and environmental models, to incorporate the influence of micro-level decision making in the system dynamics and to study the emergence of collective responses to policies. However, there are few publications which concretely apply this methodology to the study of climate change related issues. The analysis of the state of the art reported in this paper supports the idea that today ABM is an appropriate methodology for the bottom-up exploration of climate policies, especially because it can take into account adaptive behaviour and heterogeneity of the system's components.Review, Agent-Based Modelling, Socio-Ecosystems, Climate Change, Adaptation, Complexity.

Exitus: An Agent-Based Evacuation Simulation Model For Heterogeneous Populations

Evacuation planning for private-sector organizations is an important consideration given the continuing occurrence of both natural and human-caused disasters that inordinately affect them. Unfortunately, the traditional management approach that is focused on fire drills presents several practical challenges at the scale required for many organizations but especially those responsible for national critical infrastructure assets such as airports and sports arenas. In this research we developed Exitus, a comprehensive decision support system that may be used to simulate large-scale evacuations of such structures. The system is unique because it considers individuals with disabilities explicitly in terms of physical and psychological attributes. It is also capable of classifying the environment in terms of accessibility characteristics encompassing various conditions that have been shown to have a disproportionate effect upon the behavior of individuals with disabilities during an emergency. The system was applied to three unique test beds: a multi-story office building, an international airport, and a major sports arena. Several simulation experiments revealed specific areas of concern for both building managers and management practice in general. In particular, we were able to show (a) how long evacuations of heterogeneous populations may be expected to last, (b) who the most vulnerable groups of people are, (c) the risk engendered from particular design features for individuals with disabilities, and (d) the potential benefits from adopting alternate evacuation strategies, among others. Considered together, the findings provide a useful foundation for the development of best practices and policies addressing the evacuation concerns surrounding heterogeneous populations in large, complex environments. Ultimately, a capabilities based approach featuring both tactical and strategic planning with an eye toward the unique problems presented by individuals with disabilities is recommended

Technical Change and Industrial Dynamics as Evolutionary Processes

This work prepared for B. Hall and N. Rosenberg (eds.) Handbook of Innovation, Elsevier (2010), lays out the basic premises of this research and review and integrate much of what has been learned on the processes of technological evolution, their main features and their effects on the evolution of industries. First, we map and integrate the various pieces of evidence concerning the nature and structure of technological knowledge the sources of novel opportunities, the dynamics through which they are tapped and the revealed outcomes in terms of advances in production techniques and product characteristics. Explicit recognition of the evolutionary manners through which technological change proceed has also profound implications for the way economists theorize about and analyze a number of topics central to the discipline. One is the theory of the firm in industries where technological and organizational innovation is important. Indeed a large literature has grown up on this topic, addressing the nature of the technological and organizational capabilities which business firms embody and the ways they evolve over time. Another domain concerns the nature of competition in such industries, wherein innovation and diffusion affect growth and survival probabilities of heterogeneous firms, and, relatedly, the determinants of industrial structure. The processes of knowledge accumulation and diffusion involve winners and losers, changing distributions of competitive abilities across different firms, and, with that, changing industrial structures. Both the sector-specific characteristics of technologies and their degrees of maturity over their life cycles influence the patterns of industrial organization ? including of course size distributions, degrees of concentration, relative importance of incumbents and entrants, etc. This is the second set of topics which we address. Finally, in the conclusions, we briefly flag some fundamental aspects of economic growth and development as an innovation driven evolutionary process.Innovation, Technological paradigms, Technological regimes and trajectories, Evolution, Learning, Capability-based theories of the firm, Selection, Industrial dynamics, Emergent properties, Endogenous growth

Heterogeneity in Agent-based models

Agent-based models are an incredibly flexible tool that among other things, allow modellers to capture heterogeneity in agent attributes, characteristics, and behaviours. This study defines heterogeneity in agent-based models as agent granularity: the level of description used to define the agent population. Consequently, this increased complexity can make the already challenging tasks of calibration and parameter identification, even more difficult. Although modellers recognise the significance of model calibration, the process of uniquely determining model input from any given model output is overlooked. This thesis proposes an impact of heterogeneity in agent-based models is parameter non-identification. To this end, this research conducts a thorough examination of agent heterogeneity by the comparative study of homogeneous and heterogeneous scenarios in agent-based models. Using an emotional contagion case study model and approximate Bayesian computation calibration, it finds that the introduction of heterogeneity results in inaccurate parameter calibration compared to the homogeneous case. This study proposes the inaccurate results as the consequence of a failure to uniquely distinguish the effect of additional parameters in the model. Furthermore, failing to identify model parameters limits the predictive or forecasting power of the agent-based model. A simple case study is used to demonstrate that the use of unidentifiable models to inform real-world governmental and social policies can lead to erroneous conclusions and potentially unsound interventions