IDEAS home Printed from https://ideas.repec.org/a/bla/sajeco/v82y2014i2p181-192.html
   My bibliography  Save this article

Is System Dynamics Modelling of Relevance to Neoclassical Economists?

Author

Listed:
  • Douglas J. Crookes
  • Martin P. De Wit

Abstract

System dynamics modelling is a technique that is widely used in business, environmental and ecological applications. In the field of economics, however, it is less frequently used, and those that do use it are usually not professionally trained economists. One of the reasons for this is the perceived ideological differences between system dynamics modelling and neoclassical economics. System dynamics is classified in the literature as a heterodox approach. This article utilises a reputable framework from social theory to compare system dynamics modelling and neoclassical economics on ontological and epistemological grounds. This is the first known study to find congruency between these two approaches on this basis. System dynamics modelling has the potential to increase the range of modelling tools at the disposal of neoclassical economics, so long dominated by econometric and general equilibrium modelling approaches.

Suggested Citation

  • Douglas J. Crookes & Martin P. De Wit, 2014. "Is System Dynamics Modelling of Relevance to Neoclassical Economists?," South African Journal of Economics, Economic Society of South Africa, vol. 82(2), pages 181-192, June.
    • Handle: RePEc:bla:sajeco:v:82:y:2014:i:2:p:181-192
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1111/saje.12038
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Hausman, Daniel M, 1989. "Economic Methodology in a Nutshell," Journal of Economic Perspectives, American Economic Association, vol. 3(2), pages 115-127, Spring.
    2. Saeed, Khalid & Prankprakma, Ponthep, 1997. "Technological development in a dual economy: Alternative policy levers for economic development," World Development, Elsevier, vol. 25(5), pages 695-712, May.
    3. Goles, Tim & Hirschheim, Rudy, 2000. "The paradigm is dead, the paradigm is dead...long live the paradigm: the legacy of Burrell and Morgan," Omega, Elsevier, vol. 28(3), pages 249-268, June.
    4. Friedman, Milton, 1966. "Essays in Positive Economics," University of Chicago Press Economics Books, University of Chicago Press, number 9780226264035.
    5. John T. Harvey, 2006. "Modeling Interest Rate Parity: A System Dynamics Approach," Journal of Economic Issues, Taylor & Francis Journals, vol. 40(2), pages 395-403, June.
    6. Bruce Caldwell, 1980. "Positivist Philosophy of Science and the Methodology of Economics," Journal of Economic Issues, Taylor & Francis Journals, vol. 14(1), pages 53-76, March.
    7. Stanley Deetz, 1996. "Crossroads---Describing Differences in Approaches to Organization Science: Rethinking Burrell and Morgan and Their Legacy," Organization Science, INFORMS, vol. 7(2), pages 191-207, April.
    8. Cole, Hsd, 1977. "Accuracy in the long run--Where are we now," Omega, Elsevier, vol. 5(5), pages 529-542.
    9. Rochelle M. Edge & Refet S. Gürkaynak, 2011. "How useful are estimated DSGE model forecasts?," Finance and Economics Discussion Series 2011-11, Board of Governors of the Federal Reserve System (U.S.).
    10. Hands,D. Wade, 2001. "Reflection without Rules," Cambridge Books, Cambridge University Press, number 9780521797962, Enero.
    11. John Harvey, 2002. "Keynes' Chapter Twenty-Two: A System Dynamics Model," Working Papers 200201, Texas Christian University, Department of Economics.
    12. Coddington, Alan, 1976. "Keynesian Economics: The Search for First Principles," Journal of Economic Literature, American Economic Association, vol. 14(4), pages 1258-1273, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Khalid Saeed, 2014. "Jay Forrester's operational approach to economics," System Dynamics Review, System Dynamics Society, vol. 30(4), pages 233-261, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Brahmachari, Deborshi, 2016. "Neoclassical Economics as a Method of Scientific Research Program : A review of existing literature," MPRA Paper 75341, University Library of Munich, Germany.
    2. John Mingers, 2001. "Combining IS Research Methods: Towards a Pluralist Methodology," Information Systems Research, INFORMS, vol. 12(3), pages 240-259, September.
    3. Severin Hornung & Thomas Höge, 2024. "Analyzing Current Debates in Management and Organization Studies: A Meta-theoretical Review and Dialectic Interpretation," Scientia Moralitas Journal, Scientia Moralitas, Research Institute, vol. 9(1), pages 1-32, July.
    4. Yalcintas, Altug, 2013. "The Oomph in economic philosophy: a bibliometric analysis of the main trends, from the 1960s to the present," MPRA Paper 44191, University Library of Munich, Germany.
    5. Wilfred Dolfsma, 2001. "Economists as subjects: Toward a psychology of economists," Forum for Social Economics, Springer;The Association for Social Economics, vol. 30(2), pages 77-88, March.
    6. Cristian PAUN, 2012. "International Financing Decision: A Managerial Perspective," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 13(3), pages 411-425, July.
    7. Carlos A. Rodríguez, 2018. "Fuentes de las fluctuaciones macroeconómicas en Puerto Rico\Sources of macroeconomic fluctuations in Puerto Rico," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 33(2), pages 219-252.
    8. Ole Røgeberg & Morten Nordberg, 2005. "A defence of absurd theories in economics," Journal of Economic Methodology, Taylor & Francis Journals, vol. 12(4), pages 543-562.
    9. Deebii Nwiado & Lezaasi LeneeTorbira, 2016. "A Panel Data Analysis of the Validity of Uncovered Interest Rate Parity (UIRP) in Selected African Countries," Research in World Economy, Research in World Economy, Sciedu Press, vol. 7(2), pages 15-25, December.
    10. Mjøset, Lars, 2006. "The study of Nordic varieties of capitalism: A plea for contextual generalization through comparative specification," economic sociology. perspectives and conversations, Max Planck Institute for the Study of Societies, vol. 8(1), pages 4-11.
    11. Nikil Mukerji & Adriano Mannino, 2023. "Nudge Me If You Can! Why Order Ethicists Should Embrace the Nudge Approach," Journal of Business Ethics, Springer, vol. 186(2), pages 309-324, August.
    12. Astorquiza Bustos, Bilver Adrián & Castillo Caicedo, Maribel & Gómez Mejía, Alina, 2018. "Measuring the Job Stress of the Employed Population. The Case of Labor Market in Cali-Colombia || Midiendo el estrés laboral de la población empleada. El caso del mercado laboral en Cali-Colombia," Revista de Métodos Cuantitativos para la Economía y la Empresa = Journal of Quantitative Methods for Economics and Business Administration, Universidad Pablo de Olavide, Department of Quantitative Methods for Economics and Business Administration, vol. 25(1), pages 272-294, Junio.
    13. Millner, Antony & Ollivier, Hélène & Simon, Leo, 2014. "Policy experimentation, political competition, and heterogeneous beliefs," Journal of Public Economics, Elsevier, vol. 120(C), pages 84-96.
    14. Yefimov, Vladimir, 2014. "Constructivisme social, évolution de la profession d’économiste, et projet pour sa réforme radicale [Social constructivism, Evolution of the economics profession, and design for its radical reform]," MPRA Paper 54594, University Library of Munich, Germany.
    15. Escañuela Romana, Ignacio, 2016. "Azar, Determinismo e Indecidibilidad en la Teoría del Ciclo Económico [Randomness, Determinism and Undecidability in the Business Cycle Theory]," MPRA Paper 72978, University Library of Munich, Germany.
    16. Peter Riach & Judith Rich, 1998. "Of Chicken Entrails, Anthropology, and a Realistic Social Science," Feminist Economics, Taylor & Francis Journals, vol. 4(3), pages 187-191.
    17. Bresser-Pereira, Luiz Carlos & Feijó, Carmem & Araújo, Eliane Cristina, 2025. "The determination of the exchange rate: A new-developmental approach," Structural Change and Economic Dynamics, Elsevier, vol. 72(C), pages 245-255.
    18. Beckenbach, Frank, 2019. "Monism in modern science: The case of (micro-)economics," Working Paper Serie des Instituts für Ökonomie Ök-49, Hochschule für Gesellschaftsgestaltung (HfGG), Institut für Ökonomie.
    19. Ashok Chakravarti, 2012. "Institutions, Economic Performance and the Visible Hand," Books, Edward Elgar Publishing, number 14751.
    20. Jose A. Scheinkman, 2013. "Speculation, Trading and Bubbles Third Annual Arrow Lecture," Working Papers 1458, Princeton University, Department of Economics, Econometric Research Program..

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:sajeco:v:82:y:2014:i:2:p:181-192. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/essaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.