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Is System Dynamics Modelling of Relevance to Neoclassical Economists?

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  • 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
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    References listed on IDEAS

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    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.

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