National Impact Velocity (NIV) Engine

Computational Implementation of Capital Velocity Economics (CVE)

Author: Diren Kumaratilleke
Affiliation: Undergrad at University of North Carolina Chapel Hill

---

“An economy is not measured by how much it produces, but by how fast its capital regenerates and flows through itself.”

---

Core Equation

$$ \text{NIV}_t = \frac{u_t \cdot P_t^2}{(X_t + F_t)^{\eta}} $$

Symbol	Meaning
$$u_t$$	Activation intensity (derived from investment, liquidity, and rate shifts)
$$P_t$$	Regeneration share of output (R&D + Education + Capital Formation)
$$X_t$$	Idle capacity (underutilized production share)
$$F_t$$	Friction (financial spread and debt drag)
$$\eta$$	Friction exponent

---

Overview

The National Impact Velocity (NIV) framework models the real-time economic metabolism of a nation through
idle capacity, regeneration, and frictional drag.
It replaces static GDP with a motion-based metric that captures the intensity, efficiency, and regenerative power of national production.

NIV is the computational implementation of Capital Throughput Economics (CVE) — a new paradigm uniting fiscal, monetary, and real-sector data under a single regenerative measure.

⚙️ Configuration

All parameters are controlled through src/config.yaml:

config:
  mode: empirical
  steps: 240
  scenario: base_case

params:
  eta: 1.25
  alpha1: 0.8
  alpha2: 0.6
  alpha3: -0.3
  beta1: 0.4
  beta2: 0.4
  beta3: 0.2
  lambda: 0.05

simulation:
  g_growth: 0.02
  m2_growth: 0.03
  rate_change: -0.01
  output_dir: visuals/v6

# 1. Install dependencies
pip install -r requirements.txt

# 2. Run NIV Engine
python (click the .py file of your choice) --config src/config.yaml