NetLogo User Community Models
by Peter Thompson (Submitted: 03/21/2010)
WHAT IS IT?
I have decided to model the credit crunch from its early stages where the banks signed many irresponsible loans in order to boost its profits, through to where these loans defaulted, to where the bank's collapse because of the worsening economy and weakening of the pound. The dynamic model allows for many input scenarios where the culprits that caused the credit crunch can be identified and focussed on, to find solutions as to how the crisis could have been prevented, or indeed can be prevented from a specific moment onwards.
HOW IT WORKS
The model view shows people and their banks interacting, red arrows showing withdrawals and green arrows showing deposits, blue arrows are loan agreements. If a person takes out a loan, they get a label of "loan" until this is paid off; the loan period is 30 days.
HOW TO USE IT
Select the sliders to the desired position, click setup and go (loop).
THINGS TO NOTICE
Fine tuning can provide many different models for the credit crunch.
THINGS TO TRY
EXTENDING THE MODEL
We could extend the model by showing a recovery after the credit crunch. I would have like to have made the actions of agents more transparent to other agents, effectively modelling the credit crunch is a more effective manner as it is argued that the media and word of mouth played a big part in the crisis, resulting in problems such as less spending, spending on cheaper and imported goods, leading to less money being pumped into the economy, and engaging in bank runs collapsing many banks.
CREDITS AND REFERENCES
 Anand S. Rao Australian Artificial Intelligence Institute
 Ilias Sakellariou NetLogoBDI Extension http://users.uom.gr/\~iliass/projects/NetLogo/
 Wilensky, U. (1999). NetLogo. http://ccl.northwestern.edu/netlogo. Center for Connected Learning and Computer-Based Modeling. Northwestern University, Evanston, IL.
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