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Economics as a compartmental system: a simple macroeconomic example

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  • Fabio Tramontana

Abstract

The application in Economics of methods and tools originally thought for other disciplines is not new. In this paper we show how the compartmental approach, typical of Biology, Medicine, Chemistry, etc., can be used as a tool to represent the heterogeneity of the agents and introduce it into the dynamic models. We also show that in some cases the subdivision of the agents into compartments can be useful for the government in order to obtain some results more efficiently.
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  • Fabio Tramontana, 2010. "Economics as a compartmental system: a simple macroeconomic example," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 57(4), pages 347-360, December.
    • Handle: RePEc:spr:inrvec:v:57:y:2010:i:4:p:347-360
    DOI: 10.1007/s12232-010-0106-5
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    1. Gary S. Becker, 1974. "Crime and Punishment: An Economic Approach," NBER Chapters, in: Essays in the Economics of Crime and Punishment, pages 1-54, National Bureau of Economic Research, Inc.
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    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. The economics of compartments
      by Economic Logician in Economic Logic on 2010-08-17 19:16:00

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    Cited by:

    1. M. L. Bertotti & G. Modanese, 2016. "Mathematical models describing the effects of different tax evasion behaviors," Papers 1701.02662, arXiv.org.
    2. Silva, César M. & Rosa, Silvério & Alves, Helena & Carvalho, Pedro G., 2016. "A mathematical model for the customer dynamics based on marketing policy," Applied Mathematics and Computation, Elsevier, vol. 273(C), pages 42-53.
    3. Artzrouni, Marc & Tramontana, Fabio, 2014. "The debt trap: A two-compartment train wreck… and how to avoid it," Journal of Policy Modeling, Elsevier, vol. 36(2), pages 241-256.
    4. Artzrouni, Marc & Tramontana, Fabio, 2013. "The debt trap: a two-compartment train wreck," MPRA Paper 47578, University Library of Munich, Germany.
    5. Øverby, Harald & Audestad, Jan A. & Szalkowski, Gabriel Andy, 2023. "Compartmental market models in the digital economy—extension of the Bass model to complex economic systems," Telecommunications Policy, Elsevier, vol. 47(1).
    6. M. L. Bertotti & G. Modanese, 2018. "Mathematical models describing the effects of different tax evasion behaviors," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 13(2), pages 351-363, July.
    7. Aleksejus Kononovicius & Valentas Daniunas, 2013. "Agent-based and macroscopic modeling of the complex socio-economic systems," Papers 1303.3693, arXiv.org, revised Apr 2013.

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    More about this item

    Keywords

    Compartmental systems; Heterogeneous agents; Fiscal policy; D82; E62; H32;
    All these keywords.

    JEL classification:

    • C60 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - General
    • E0 - Macroeconomics and Monetary Economics - - General
    • E1 - Macroeconomics and Monetary Economics - - General Aggregative Models
    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory

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