TABS dynamics simulation of economic crisis based on three production sectors

In this paper, from the bottom-up methodology, an agent-based economic model which had three different types of enterprise agents, a government agent and a financial department agent was built. The actions of production, sale, consumption, borrowing and repayment were simulated in a two-dimensional regular network to simulate the economic world. In this paper, the occurrence and outbreak of economic crisis were studied through scenario simulation as well as the solution strategies. The results show that there is a transmission process from one sector to another in the occurrence of crisis. A loose financial policy and a loose restriction of agents' establishment bring the economy a rapid growth; but this will also make sectors overextending, bring a higher mismatch between supply and demand, make both production and financial market unsteady, and finally leads to a crisis. When economic crisis occurs, a progressively stringent strategy should be adopted to recover the scope of the economy and restrain the excessive expansion of the industry.