The Research On Simulation Model Of Government Account Capital Flow In Financial Network

With rapid growth of financial innovation, financial network isbecoming complicated with its non-linear and self organizingcharacteristics. However, the financial system is so huge and complexthat it can hardly be approached by existing mathematical model. Instead,Agent-based simulation technology has been widely used in the researchof financial area. It builds agents with self-determination and leaningabilities to represent real units in macroeconomic system. With the agentscommunicating with each others like in the real economy, it can simulatea dynamic and complex financial system.In this paper, Chinese government is chosen as main target researchobject. Multi-agent based simulation technology is adopted to study thecapital flow in financial system to improve existing financial networksimulation platform, set up by Financial System Simulation Group. Theoperation result of macro-policy is simulated through Agent-basedsimulation, which describes government behavior in different levels anddepartments.First, a two-level of “central and province” government isestablished according to financial revenue and expenditure theory andoperation in government in practice. The government is divided into threedepartments, Financial Department, Social Assurance Department andEducation Department, which have close relation with individuals andcorporations. Afterwards, three departments’ agents are created, includingevent list and rule base respectively. A reciprocal relationship is builtamong different functional departments.Then, the event-based simulation system was designed anddeveloped according to the Agent model. In the system, there are fourkinds of participants: government, corporate, individuals and banks.Finally, experiments are designed and conducted to simulate governmentdaily financial behaviors. And the characteristics of experiments results have been explained in detail.In conclusion, the mutil-level and mutil-department governmentagents are built, provide experiment data, enrich the design ofgovernment agents in mutil-agent capital flow simulation system and layfoundation for further development of social financial system simulationplatform.