Liberia Aggregate & Sector-First Financial Model
Do you have questions or comments about this model? Ask them here! (You'll first need to log in.)
WHAT IS IT?
This model simulates how Liberia’s economic sectors contribute to national output under two policy approaches: sector-first and centralized coordination. Each sector is represented as an agent with its own allocation, effectiveness rate, leadership effect, and final output. The model shows whether the economy performs better when sectors act independently or when their efforts are coordinated toward a (centralized) national strategy.
HOW IT WORKS
Each sector is an agent. Every sector receives a budget allocation (deonoted as Ai) and an effectiveness value shown in RPF as (Ri). The model first calculates each sector’s basic output using:
AiRi = Ai * Ri and then compares the sector-first approach with the aggregate-first approach to determine the best strategic approach to policy implimentation in Liberia.
Under the sector-first approach, each sector contributes only its individual output. Under the centralized approach, the model adds leadership and coordination effects through accounting for the combined (aggregate) leadership-factor (denoted in RPF as k) and how the existing policy environment (denoted in RPF as y or gamma) contributes to total output. The model then compares total sector output with total centralized output to show the coordination gain or loss.
HOW TO USE IT
Click "setup" on the "Interface" tab to clear the world (the square box where the turtles exist - the environment), create the sector agents, assign sector data, and reset the model.
Click the "to go" button on the "Interface" tab to run the model continuously. The model updates sector output, sector size, and color based on the selected policy approach.
Use the policy-mode chooser to switch between:
"sector-first" "centralized"
Click compare-policies to print the sector-first total, centralized total, and coordination gain in the Command Center.
Click show-best-worst-sectors to display the four strongest and four weakest sectors based on current output.
THINGS TO NOTICE
Notice that the sector-first approach produces lower aggregate output because each sector acts alone. This represents fragmentation, weak coordination, and missed national-level gains.
Notice that the centralized approach produces higher output because coordination, leadership, and shared strategic alignment improve the economy’s total performance.
Also notice which sectors become visually larger. Larger sector agents represent stronger output contributions. Smaller agents represent weaker performance under the current allocation and effectiveness assumptions.
Please feel free to communicate your observations about what you noticed and how I can improve the model fit (tailored to the specific realities in FY26 budet environment).
THINGS TO TRY
Try switching between sector-first and centralized policy modes and observe the change in total output.
Try pressing compare-policies after each run to see whether coordination gain increases or decreases.
Try changing leadership-factor from: 1.16 to a higher or lower value and observe how much leadership changes national output.
Try adjusting a sector’s Ri value to test how improved sector effectiveness affects the whole economy.
Try increasing weaker sectors such as Agriculture, Social Development Services, or Industry & Commerce to see whether targeted improvements produce better national dividends.
EXTENDING THE MODEL
In future versions, I will do my best to add buttons (choosers) for leadership-factor, gamma-i (environmental impact), and sector effectiveness (Ri) so users can test how leadership alignment changes national output over time. The model can also be extended to include shocks or unexpected events such as budget cuts, corruption losses, policy delays, external donor support, or sector-level reforms.
Another extension I anticipate adding is the interaction effects (shown as q in RPF) which would allow sectors to interact with one another instead of acting only as individual agents. This would make it possible to test spillover effects, where improvement in one sector, such as infrastructure, increases output in other sectors such as agriculture, health, education, and commerce.
NETLOGO FEATURES
This model uses turtles to represent sectors of the economy. Each sector stores its own allocation, effectiveness rate, leadership effect, and final output using sectors-own variables.
The model also uses scale-color to visually show performance differences among sectors. Larger and brighter sector agents represent stronger output contributions, while smaller or weaker-colored agents represent lower-performing sectors.
The model uses procedures such as setup, go, calculate-outputs, compare-policies, and show-best-worst-sectors to organize the simulation logic.
RELATED MODELS
Related NetLogo models include economic growth models, resource allocation models, systems dynamics models, and agent-based models that examine coordination, competition, and emergence.
Conceptually, this model is also related to organizational behavior models, policy coordination models, and complex adaptive systems models where individual agents produce different outcomes depending on whether they act independently or under a coordinated system.
CREDITS AND REFERENCES
This model is based on the user-developed Relative Positioning Framework (RPF), part of an ongoing study titled:
Leadership Misalignment Across Time: Why Leadership Must Be Tailored to Meet the Unique Needs of Today’s Organizations
The model applies RPF ideas to Liberia’s economic sectors to examine whether a sector-first or centralized policy approach produces stronger national output. It is intended for research, teaching, and simulation-based exploration of leadership alignment, resource allocation, and national development outcomes.
Comments and Questions
;; FINAL NOTES ON CODE DESCRIPION OF THE RPF MODEL (USING NETLOGO) ;; From an RPF perspective, the current ranking identifies which sectors controbute most to aggregate national output under existing assumptions ;; It can serve as the basis of experimenting with reallocation scenarios to test if moving resources from lower-performing sectors to highper performing sectors will improve overall output. ;; We can test the impact on total output if we were to redistribute resources from other sectors (eg. PADM). ;; Overall, Liberia is bettter off following an agggregate long-term strategy that promotes cordination/synergy between sectors based on program-based budgeting. ;; GAME OF LIFE RULES - RPF APPLICATION ;; Rule 1: Survival Rule ;; A sector survives when output is above the minimum threshold ;; Rule 2: Growth Rule ;; A sector grows when effectiveness and leadership alignment are high ;; Rule 3: Decline Rule ;; A sector weakens when resources exceed performance globals [ total-budget total-sector-output total-centralized-output sector-first-total coordination-gain leadership-factor economy-message minimum-output-threshold ] breed [sectors sector] sectors-own [ sector-name Ai Ri AiRi gamma-i leadership-output final-output contribution-share adopted? policy-state ] ;; each sector is affected by aggregate or sector-first policy approaches and leadership to apply-rpf-rules ask sectors [ ; Survival Rule if final-output < minimum-output-threshold [ set color red ] ; Growth Rule if Ri > 0.03 [ set color turquoise ] ] end to setup clear-all set leadership-factor 1.20 set policy-mode "centralized" set minimum-output-threshold 1000000 create-sectors 11 [ set shape "house" set size 3 set color brown setxy random-xcor random-ycor set policy-state "sector-first" set color violet ] ;; create a network of agents ask turtles [ create-link-with one-of other turtles ] ask one-of sectors [ set policy-state "centralized" set color green ] assign-sector-data calculate-outputs apply-rpf-rules layout-circle sectors 10 reset-ticks end to assign-sector-data ask sectors [ if who = 0 [ set sector-name "Public Administration" set Ai 465830677 set Ri 0.12535 set gamma-i 12357 ] if who = 1 [ set sector-name "Municipal Government" set Ai 66895865 set Ri 0.018 set gamma-i 1774 ] if who = 2 [ set sector-name "Transparency & Accountability" set Ai 34415342 set Ri 0.00926 set gamma-i 913 ] if who = 3 [ set sector-name "Security & Rule of Law" set Ai 151830763 set Ri 0.04086 set gamma-i 4027 ] if who = 4 [ set sector-name "Health" set Ai 101711262 set Ri 0.02737 set gamma-i 2698 ] if who = 5 [ set sector-name "Social Dev. Services" set Ai 16124238 set Ri 0.00434 set gamma-i 428 ] if who = 6 [ set sector-name "Education" set Ai 132976385 set Ri 0.03578 set gamma-i 3527 ] if who = 7 [ set sector-name "Energy & Environment" set Ai 78187195 set Ri 0.02104 set gamma-i 2074 ] if who = 8 [ set sector-name "Agriculture" set Ai 13663843 set Ri 0.00368 set gamma-i 362 ] if who = 9 [ set sector-name "Infrastructure & Basic Services" set Ai 133214386 set Ri 0.03585 set gamma-i 3534 ] if who = 10 [ set sector-name "Industry & Commerce" set Ai 16235271 set Ri 0.00437 set gamma-i 431 ] ] end to calculate-outputs ask sectors [ set AiRi Ai * Ri set leadership-output leadership-factor * AiRi ] set total-budget sum [Ai] of sectors set sector-first-total sum [AiRi] of sectors ask sectors [ set final-output leadership-output + gamma-i * sqrt Ai ] set total-centralized-output sum [final-output] of sectors set coordination-gain total-centralized-output - sector-first-total if policy-mode = "sector-first" [ ask sectors [ set final-output AiRi set color violet set size 1 + (AiRi / 10000000) set label sector-name ] set total-sector-output sector-first-total set economy-message "Sector-first policy weakens the economy: sectors act alone and lose national value." ] if policy-mode = "centralized" [ ask sectors [ set final-output leadership-output + gamma-i * sqrt Ai set contribution-share final-output / total-centralized-output set color scale-color green contribution-share 0 0.50 set size 1 + (final-output / 50000000) set label sector-name ] set total-sector-output total-centralized-output set economy-message "Centralized policy wins: coordination increases national output and captures aggregate gains." ] end to go calculate-outputs update-policy-adoption apply-rpf-rules layout-circle sectors 10 tick end to compare-policies calculate-outputs print word "Sector-first total output: $" precision sector-first-total 2 print word "Centralized total output: $" precision total-centralized-output 2 print word "Coordination gain: $" precision coordination-gain 2 if total-centralized-output > sector-first-total [ print "RESULT: Sector-first policy is costly because it produces less national output." print "RESULT: Centralized policy wins because coordination creates higher aggregate economic value." ] end to show-best-worst-sectors calculate-outputs let ranked-sectors sort-by [[a b] -> [final-output] of a > [final-output] of b] sectors let best-4 sublist ranked-sectors 0 4 let worst-4 sublist ranked-sectors ((length ranked-sectors) - 4) (length ranked-sectors) print "----- BEST 4 PERFORMING SECTORS -----" foreach best-4 [ s -> print (word [sector-name] of s " | Output: $" precision ([final-output] of s) 2 " | Allocation: $" precision ([Ai] of s) 2 " | R: " precision ([Ri] of s) 5) ] print "----- WORST 4 PERFORMING SECTORS -----" foreach worst-4 [ s -> print (word [sector-name] of s " | Output: $" precision ([final-output] of s) 2 " | Allocation: $" precision ([Ai] of s) 2 " | R: " precision ([Ri] of s) 5) ] end ;; This procedure will determine whether or not sectors adopted a sector-first or centralized approach to policy in Liberia to adopted ;; adapt based on broadcast influence if random-float 1.0 < broadcast-influence [ set adopted? true set color white ] ;; adapt based on social influence of a (social) network let neighbors-adopted link-neighbors with [adopted?] let total-neighbors link-neighbors if random-float 1.0 < ( social-influence * count neighbors-adopted / count total-neighbors) [ set adopted? true set color blue ] end ;; add an adoption logic based on policy approach to update-policy-adoption ask sectors with [policy-state = "sector-first"] [ if random-float 1 < 0.10 [ set policy-state "centralized" set color green ] ] end ;; This procedure enables us to create an reset innovation button in the interface that we can run on the same network multiple time to help us determine the consistency of actions in a node to reset-innovation ask sectors [ set adopted? false set color magenta ] ;; choose one initial innovator ask one-of sectors [ set adopted? true set color yellow ] reset-ticks end ;; This procedure turn the links on or off until needed to hide-links ask links [ hide-link ] end to show-links ask links [ show-link ] end to show-color-legend print "========================================" print "RPF MODEL COLOR LEGEND" print "========================================" print "VIOLET: Sector-first policy sector" print "GREEN: Centralized policy sector" print "SKY: Centralized-policy adopter" print "BLUE: Sector influenced through social-network adoption" print "TURQUOISE: High-effectiveness sector" print "RED: Sector below minimum output threshold" print "YELLOW: Initial centralized-policy innovator" print "========================================" print "COLOR PRIORITIES" print "RED: Highest priority - weak / below output threshold" print "TURQUOISE: High effectiveness and surviving sector" print "SKY: Adopted centralized policy" print "BLUE: Social-network influenced adopter" print "GREEN: Centralized policy" print "VIOLET: Sector-first policy" print "YELLOW: Initial centralized-policy innovator" print "========================================" end
There is only one version of this model, created 6 days ago by Preston Varkpeh.
Attached files
No files
This model does not have any ancestors.
This model does not have any descendants.
Download this model