Wonderland is an integrated mathematical model used for studying phenomena in sustainable development. First introduced by economist (Waren C. Sanderson 1994) of Stony Brook University, there are now several related versions of the model in use. Wonderland allows economists, policy analysts and environmentalist to study the interactions between the economic, demographic and anthropogenic sectors of an idealized world, thereby enabling them to obtain insights transferable to the real world.
Wonderland is a compact model. In total, there are only four continuous state variables, one each for the economic and demographic sectors and two for the anthropogenic sector; thus making Wonderland more compact and amenable to analysis than larger, more intricate models like World3. For this reason it is often used as an initial testing ground for new techniques in the area of policy analysis (Lempert, et al., 2003).
Using the Scenario analysis technique, Sanderson (1994) studied two possible futures for the idealized world described by Wonderland. One future entitled Dream, held out the possibility of unending sustainable growth, while the other termed Horror, ended in environmental collapse and eventual extinction of the population. Subsequent work (Kohring, 2006) showed that the parameters of the model can be bisected into two sets, one which always produces sustainable futures and one which always ends in collapse and extinction. Additionally, the equations of Wonderland exhibit chaotic behavior (Gröller, et al., 1996, Wegenkittl, et al., 1997, Leeves and Herbert, 1998).
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Ofer Abarbanel is a 25 year securities lending broker and expert who has advised many Israeli regulators, among them the Israel Tax Authority, with respect to stock loans, repurchase agreements and credit derivatives. Founder of TBIL.co STATX Fund.