Bernardo Furtado

Tenured researcher @ government think-tank (IPEA) and CNPq (productivity grant - since 2014), complex modeler interested, data fan, transitional Python user, PhD. Background in urban analysis, economics, geography. From twitter.com/furtadobb

Research Interests

Agent-based modeling, urban policy, urban economics. Metropolis and municipalities analyses.

Peer reviewed PolicySpace2: modeling markets and endogenous public policies

Bernardo Furtado | Published Thursday, February 25, 2021 | Last modified Friday, January 14, 2022

Policymakers decide on alternative policies facing restricted budgets and uncertain future. Designing public policies is further difficult due to the need to decide on priorities and handle effects across policies. Housing policies, specifically, involve heterogeneous characteristics of properties themselves and the intricacy of housing markets and the spatial context of cities. We propose PolicySpace2 (PS2) as an adapted and extended version of the open source PolicySpace agent-based model. PS2 is a computer simulation that relies on empirically detailed spatial data to model real estate, along with labor, credit, and goods and services markets. Interaction among workers, firms, a bank, households and municipalities follow the literature benchmarks to integrate economic, spatial and transport scholarship. PS2 is applied to a comparison among three competing public policies aimed at reducing inequality and alleviating poverty: (a) house acquisition by the government and distribution to lower income households, (b) rental vouchers, and (c) monetary aid. Within the model context, the monetary aid, that is, smaller amounts of help for a larger number of households, makes the economy perform better in terms of production, consumption, reduction of inequality, and maintenance of financial duties. PS2 as such is also a framework that may be further adapted to a number of related research questions.

This study simulates the evolution of artificial economies in order to understand the tax relevance of administrative boundaries in the quality of life of its citizens. The modeling involves the construction of a computational algorithm, which includes citizens, bounded into families; firms and governments; all of them interacting in markets for goods, labor and real estate. The real estate market allows families to move to dwellings with higher quality or lower price when the families capitalize property values. The goods market allows consumers to search on a flexible number of firms choosing by price and proximity. The labor market entails a matching process between firms (given its location) and candidates, according to their qualification. The government may be configured into one, four or seven distinct sub-national governments, which are all economically conurbated. The role of government is to collect taxes on the value added of firms in its territory and invest the taxes into higher levels of quality of life for residents. The results suggest that the configuration of administrative boundaries is relevant to the levels of quality of life arising from the reversal of taxes. The model with seven regions is more dynamic, but more unequal and heterogeneous across regions. The simulation with only one region is more homogeneously poor. The study seeks to contribute to a theoretical and methodological framework as well as to describe, operationalize and test computer models of public finance analysis, with explicitly spatial and dynamic emphasis. Several alternatives of expansion of the model for future research are described. Moreover, this study adds to the existing literature in the realm of simple microeconomic computational models, specifying structural relationships between local governments and firms, consumers and dwellings mediated by distance.

We develop an agent-based model (U-TRANS) to simulate the transition of an abstract city under an industrial revolution. By coupling the labour and housing markets, we propose a holistic framework that incorporates the key interacting factors and micro processes during the transition. Using U-TRANS, we look at five urban transition scenarios: collapse, weak recovery, transition, enhanced training and global recruit, and find the model is able to generate patterns observed in the real world. For example, We find that poor neighbourhoods benefit the most from growth in the new industry, whereas the rich neighbourhoods do better than the rest when the growth is slow or the situation deteriorates. We also find a (subtle) trade-off between growth and equality. The strategy to recruit a large number of skilled workers globally will lead to higher growth in GDP, population and human capital, but it will also entail higher inequality and market volatility, and potentially create a divide between the local and international workers. The holistic framework developed in this paper will help us better understand urban transition and detect early signals in the process. It can also be used as a test-bed for policy and growth strategies to help a city during a major economic and technological revolution.

Violence against women occurs predominantly in the family and domestic context. The COVID-19 pandemic led Brazil to recommend and, at times, impose social distancing, with the partial closure of economic activities, schools, and restrictions on events and public services. Preliminary evidence shows that intense co- existence increases domestic violence, while social distancing measures may have prevented access to public services and networks, information, and help. We propose an agent-based model (ABM), called VIDA, to illustrate and examine multi-causal factors that influence events that generate violence. A central part of the model is the multi-causal stress indicator, created as a probability trigger of domestic violence occurring within the family environment. Two experimental design tests were performed: (a) absence or presence of the deterrence system of domestic violence against women and measures to increase social distancing. VIDA presents comparative results for metropolitan regions and neighbourhoods considered in the experiments. Results suggest that social distancing measures, particularly those encouraging staying at home, may have increased domestic violence against women by about 10%. VIDA suggests further that more populated areas have comparatively fewer cases per hundred thousand women than less populous capitals or rural areas of urban concentrations. This paper contributes to the literature by formalising, to the best of our knowledge, the first model of domestic violence through agent-based modelling, using empirical detailed socioeconomic, demographic, educational, gender, and race data at the intraurban level (census sectors).

PolicySpace models public policies within an empirical, spatial environment using data from 46 metropolitan regions in Brazil. The model contains citizens, markets, residences, municipalities, commuting and a the tax scheme. In the associated publications (book in press and https://arxiv.org/abs/1801.00259) we validate the model and demonstrate an application of the fiscal analysis. Besides providing the basics of the platform, our results indicate the relevance of the rules of taxes transfer for cities’ quality of life.

This is an initial exploratory exercise done for the class @ http://thiagomarzagao.com/teaching/ipea/ Text available here: https://arxiv.org/abs/1712.04429v1
The program:
Reads output from an ABM model and its parameters’ configuration
Creates a socioeconomic optimal output based on two ABM results of the modelers choice
Organizes the data as X and Y matrices
Trains some Machine Learning algorithms

A simple agent-based spatial model of the economy

Bernardo Alves Furtado Isaque Daniel Rocha Eberhardt | Published Thursday, March 10, 2016 | Last modified Tuesday, November 22, 2016

The modeling includes citizens, bounded into families; firms and governments; all of them interacting in markets for goods, labor and real estate. The model is spatial and dynamic.

This is an adaptation and extension of Robert Axtell’s model (2013) of endogenous firms, in Python 3.4

Under development.

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