Classification tags: economics, minimal economy, DES, next-event time progression
The model is based on discrete time with days as time units. A month consists of a StartOfMonth event followed by 21 EachDay events representing the 21 consecutive working days of a month, which are followed by an EndOfMonth event.
The model is composed of the object types Household and Firm as well as the event types StartOfMonth, EachDay and EndOfMonth. Households are characterized by their reservation wage defining their expectation on their wage, and their liquidity (amount of money). Firms are characterized by their liquidity, their consumption goods price, their wage rate and their inventory level.
At the start of a month, firms may adjust their wage rate and consumption goods price as well as their number of employees, while households may search for cheaper vendors and for a job (if unemployed) or a better paid job (if employed), as well as decide on their monthly consumption budget.
On each day, households purchase consumption goods and firms produce new consumption goods depending on their number of workers.
At the end of a month, firms distribute profits, pay wages, and decide about firing a worker. Households receive their wage and may adjust their reservation wage.
The model's two object types, and their associations with each other, implemented in Firm.js and Household.js , are described in the following information design model:
T.B.D.