IDEAS home Printed from https://ideas.repec.org/a/ers/journl/vxxiiy2019i4p347-363.html
   My bibliography  Save this article

A Hybrid Simulation Approach to Modelling the Impact of Public Interventions on Poverty

Author

Listed:
  • Małgorzata Latuszynska
  • Shivan Fate

Abstract

Purpose: The aim of the article is to present the concept of a hybrid simulation model to study the impact of public intervention on the level of poverty at the local, regional and national levels. Design/Methodology/Approach: The proposed model is the hybrid of two computer simulation methods Agent-Based Simulation (ABS) and System Dynamics (SD). Findings: Counteracting the phenomenon of poverty is one of the tasks of public administration units. Various tools and instruments can be used to fight poverty, as a part of numerous programs financed from public funds, but their implementation should be preceded by a thorough analysis of the effects arising after their application. This is not easy, because the phenomenon of poverty is very complex, it results from the arrangement of many interrelated elements, and the outcomes of actions are visible only after a longer period of time. This system is characterized by the heterogeneity of elements. Some of them are on a macro scale (e.g. GDP level, labour market), while others refer to the micro scale (e.g. households and their members). Building a model of households requires the use of a method that allows to reflect the behaviour and decision-making rules of individuals and the interaction between them in a disaggregated form. Agent-Based Simulation (ABS) is such a method. On the other hand, modelling elements occurring in the macro scale, where we usually deal with aggregate quantities, is best matched by System Dynamics (SD) simulation method, which allows for reflecting dynamic behaviour through feedback loops. Practical Implications: The proposed concept can be used both by public administration units at various levels as well as by scientists - to conduct socio-economic research. Originality/Value: The applied simulation approach allows to capture the interrelations between the modelled effects in a dynamic manner for a long-time horizon, which is extremely important in the case of public management activities.

Suggested Citation

  • Małgorzata Latuszynska & Shivan Fate, 2019. "A Hybrid Simulation Approach to Modelling the Impact of Public Interventions on Poverty," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 347-363.
    • Handle: RePEc:ers:journl:v:xxii:y:2019:i:4:p:347-363
    as

    Download full text from publisher

    File URL: https://www.ersj.eu/journal/1513/download
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Wallentin, Gudrun & Neuwirth, Christian, 2017. "Dynamic hybrid modelling: Switching between AB and SD designs of a predator-prey model," Ecological Modelling, Elsevier, vol. 345(C), pages 165-175.
    2. Gisselquist, Rachel M., 2012. "Good Governance as a Concept, and Why This Matters for Development Policy," WIDER Working Paper Series 030, World Institute for Development Economic Research (UNU-WIDER).
    3. Konopczak, Karolina & Skibicki, Jakub, 2012. "Mikrosymulacyjny model podatkowo-zasiłkowy Ministerstwa Finansów – dokumentacja," MF Working Papers 33, Ministry of Finance in Poland.
    4. James Foster & Suman Seth & Michael Lokshin & Zurab Sajaia, 2013. "A Unified Approach to Measuring Poverty and Inequality--Theory and Practice : Streamlined Analysis with ADePT Software," World Bank Publications - Books, The World Bank Group, number 13731.
    5. Mateusz Piwowarski & Danuta Miłaszewicz & Małgorzata Łatuszyńska & Mariusz Borawski & Kesra Nermend, 2018. "Application of the Vector Measure Construction Method and Technique for Order Preference by Similarity Ideal Solution for the Analysis of the Dynamics of Changes in the Poverty Levels in the European ," Sustainability, MDPI, vol. 10(8), pages 1-24, August.
    6. Luciano Canova & Luca Piccoli & Amedeo Spadaro, 2015. "An ex ante evaluation of the Revenu de Solidarité Active by micro–macro simulation techniques," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-20, December.
    7. repec:unu:wpaper:wp2012-30 is not listed on IDEAS
    8. Brailsford, Sally C. & Eldabi, Tillal & Kunc, Martin & Mustafee, Navonil & Osorio, Andres F., 2019. "Hybrid simulation modelling in operational research: A state-of-the-art review," European Journal of Operational Research, Elsevier, vol. 278(3), pages 721-737.
    9. United Nations UN, 2015. "Transforming our World: the 2030 Agenda for Sustainable Development," Working Papers id:7559, eSocialSciences.
    10. Holly Sutherland & Francesco Figari, 2013. "EUROMOD: the European Union tax-benefit microsimulation model," International Journal of Microsimulation, International Microsimulation Association, vol. 1(6), pages 4-26.
    11. Zhikun Ding & Wenyan Gong & Shenghan Li & Zezhou Wu, 2018. "System Dynamics versus Agent-Based Modeling: A Review of Complexity Simulation in Construction Waste Management," Sustainability, MDPI, vol. 10(7), pages 1-13, July.
    12. Rachel M. Gisselquist, 2012. "Good Governance as a Concept, and Why This Matters for Development Policy," WIDER Working Paper Series wp-2012-030, World Institute for Development Economic Research (UNU-WIDER).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gratiela Georgiana Noja & Mirela Cristea & Nicoleta Sirghi & Camelia-Daniela Hategan & Paolo D’Anselmi, 2019. "Promoting Good Public Governance and Environmental Support for Sustainable Economic Development," IJERPH, MDPI, vol. 16(24), pages 1-21, December.
    2. Nguyen, Le Khanh Ngan & Howick, Susan & Megiddo, Itamar, 2024. "A framework for conceptualising hybrid system dynamics and agent-based simulation models," European Journal of Operational Research, Elsevier, vol. 315(3), pages 1153-1166.
    3. Rachel M. Gisselquist, 2013. "Evaluating Governance Indexes: Critical and Less Critical Questions," WIDER Working Paper Series wp-2013-068, World Institute for Development Economic Research (UNU-WIDER).
    4. Gisselquist, Rachel & Niño-Zarazúa, Miguel, 2013. "What can experiments tell us about how to improve governance?," MPRA Paper 49300, University Library of Munich, Germany.
    5. Naseemullah, Adnan, 2023. "The political economy of national development: A research agenda after neoliberal reform?," World Development, Elsevier, vol. 168(C).
    6. Aamir Aijaz Syed & Assad Ullah & Muhammad Abdul Kamal, 2024. "Does economic policy uncertainty impedes financial inclusion in BRICS economies: the mediating role of quality of governance," Economic Change and Restructuring, Springer, vol. 57(1), pages 1-24, February.
    7. Khamdamov, T., 2022. "A brief overview of the evolution of computer simulations in economic research," Journal of the New Economic Association, New Economic Association, vol. 54(2), pages 189-207.
    8. Kozar Łukasz, 2021. "Non-Monetary Indicators of Social Exclusion – A Multidimensional Comparative Analysis of the Eu-10 Countries," Econometrics. Advances in Applied Data Analysis, Sciendo, vol. 25(4), pages 40-53, December.
    9. Amidu Kalokoh & Lada V. Kochtcheeva, 2022. "Governing the artisanal gold mining sector in the Mano River Union: A comparative study of Liberia and Sierra Leone," Journal of International Development, John Wiley & Sons, Ltd., vol. 34(7), pages 1398-1413, October.
    10. Nwebo Osy Ezechukwunyere, 2018. "The African Union Agenda 2063 and the Imperative of Democratic Governance," The Law and Development Review, De Gruyter, vol. 11(2), pages 259-276, December.
    11. Fiona Nunan, 2018. "Navigating multi‐level natural resource governance: an analytical guide," Natural Resources Forum, Blackwell Publishing, vol. 42(3), pages 159-171, August.
    12. Azadi, Hossein, 2020. "Monitoring land governance: Understanding roots and shoots," Land Use Policy, Elsevier, vol. 94(C).
    13. Szumowski Witold & Cyfert Szymon, 2018. "A Model for evaluating strategic maturity of the local government," Management, Sciendo, vol. 22(2), pages 7-24, December.
    14. Rudnick, Jessica & Niles, Meredith & Lubell, Mark & Cramer, Laura, 2019. "A comparative analysis of governance and leadership in agricultural development policy networks," World Development, Elsevier, vol. 117(C), pages 112-126.
    15. Sen, Kunal, 2013. "Governance and Development Outcomes in Asia," ADB Economics Working Paper Series 384, Asian Development Bank.
    16. Shafqut Ullah & Muhammad Khan & Seong-Min Yoon, 2021. "Measuring Energy Poverty and Its Impact on Economic Growth in Pakistan," Sustainability, MDPI, vol. 13(19), pages 1-19, October.
    17. Esmé de Bruijn & Carel Dieperink, 2022. "A Framework for Assessing Climate Adaptation Governance on the Caribbean Island of Curaçao," Sustainability, MDPI, vol. 14(22), pages 1-16, November.
    18. Paulos C Tsegaw, 2020. "The Nexus Between Good Governance Indicators And Human Development Index In Africa: An Econometric Analysis," Journal of Public Administration and Governance, Macrothink Institute, vol. 10(2), pages 119-119, December.
    19. Alexandri, Eva & Figari, Francesco & Longo, Enrico & Suta, Cornelia-Madalina, 2024. "A micro-macro approach for the evaluation of fiscal policies: The case of the Italian tax-benefit reform," Economic Modelling, Elsevier, vol. 135(C).
    20. Evelyn Dietsche, 2017. "Political economy and governance," WIDER Working Paper Series 024, World Institute for Development Economic Research (UNU-WIDER).

    More about this item

    Keywords

    Hybrid simulation; poverty; public management; public intervention; ex-ante evaluation.;
    All these keywords.

    JEL classification:

    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • H83 - Public Economics - - Miscellaneous Issues - - - Public Administration

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ers:journl:v:xxii:y:2019:i:4:p:347-363. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marios Agiomavritis (email available below). General contact details of provider: https://ersj.eu/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.