EconPapers    
Economics at your fingertips  
 

Simulation of the Role of Government in Spatial Agent-Based Model

Victor Suslov (), Tatyana Novikova () and Alexander Tsyplakov
Additional contact information
Victor Suslov: Institute of Economics and Industrial Engineering, Siberian Branch, Russian Academy of Sciences
Tatyana Novikova: National Research University Novosibirsk State University , Institute of Economics and Industrial Engineering of the Siberian Branch of the Russian Academy of Sciences

Economy of region, 2016, vol. 1, issue 3, 951 - 965

Abstract: The paper describes the further development of an agent-based multiregional input-output model of the Russian economy. We consider the idea of incorporating the government into the model and analyze the results of experimental calculations for the conditional example of spatial economy. New agents are included into the model such as the federal and regional governments, pension fund and also the state enterprises producing public goods at the federal and regional levels. The government sets four types of taxes (personal and business income taxes, VAT and payroll taxes), ensures the provision of public goods and provides social, investment and interbudgetary transfers to households, firms and budgets. Social transfers consist of social assistance and unemployment benefits. The utility functions of households are expanded by the terms associated with national and regional public goods. The budget policy is designed in accordance with the maximization of isoelastic function of social welfare that formalizes the choice between the different concepts of social justice. The Gini index is used for the monitoring the inequality of income distribution. The results of experimental calculations present the convergence of the new version of the model to the state of quasi-equilibrium. The special attention is paid an optimal level of the taxation maximizing the social welfare function. Four variants of the optimal tax rates are defined: for three major taxes at a fixed proportion of rates and for each of the tax separately at zero rates of two other taxes. The further directions of modelling are identified, they allow to investigate the spatial development of the Russian economy taking into account the decision-making by private agents in responding to government policies.

Keywords: agent-based modelling; spatial economy; government policy; public goods; social transfers; taxation; state enterprises; social welfare function; economic efficiency; social justice; regional governments (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
http://economyofregion.ru/Data/Issues/ER2016/Septe ... mber2016_951_965.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ura:ecregj:v:1:y:2016:i:3:p:951-965

Access Statistics for this article

More articles in Economy of region from Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences
Bibliographic data for series maintained by Alexey Naydenov ().

 
Page updated 2021-09-20
Handle: RePEc:ura:ecregj:v:1:y:2016:i:3:p:951-965