Week 5 – Incorporating GDP And Final Prep

This week, I added GDP as our metric with which to measure our taxes distortions. GDP is of course calculated according to the standard Y=C+G+I+NX.

1. G Includes Money Collected From Passing Go And Chance/Community Chest Cards.
2. I Include Buying Properties, Building Houses, Trading, And Selling Assets To The Bank.
3. C Includes Rent Paid To Other Players And Money Spent To Get Out Of Jail.
4. NX Is Nonexistent.

The plan is to use this to compare the GDPs of different tax parameters to a baseline simulation where no taxes are in place. This will allow me to essentially compare taxes to what would’ve happened if the tax was never implemented–something we obviously can’t do in real life. Now back to the elephant in the room: trade. To be entirely honest, I have neglected this aspect of the simulation for the past week. I am currently researching how to approach this problem, but once I figure something out (and I will figure something out), I will be able to move forward with tax simulations. Nathan out.