Modeling Politico-Economic Interactions Within and Between Nations

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Abstract
This article is concerned with the general problem of politico-economic linkages within and between nations. These relations are analyzed with a global computer simulation model. The structure of the model is presented in some detail and then results of simulation runs are used to describe politico-economic interactions and to predict their future trends. The model, SIMPEST (Simulation Political, Economic, and Strategic Interactions), is completely computerized and derived from formal descriptions of nation- states composed of three interacting sectors: an economic and resource sector, an internal political sector, and a governmental decision-making sector. Using historical data, the model has been estimated empirically for complete representations of the United States, the USSR, and China and includes the influence of military allies (NATO and Warsaw Pact countries). On the basis of these estimations, certain propositions about major power interactions and projections of their evolution until 1990 are presented and discussed.

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