Utilizing System Dynamics Models in Analyzing Macroeconomic Variables of Yemen
The purpose of the System Dynamics method is to study the relationship between structure and behavior in non-linear, dynamic systems. In such systems, the significance of various structural components to the behavior pattern exhibited, changes as the behavior unfolds. Changes in structural significance modify that behavior pattern which, in turn, feeds back to change the relative significance of structural components. We develop a macroeconomic model through which we can study the characteristics of the feedback between structure and behavior. This model is based on multiplier-accelerator model, and inventory – adjustment model. This work is an extension of the work by Nathan Forrester on the use of basic macroeconomic theory to stabilize policy analysis. The design of a System Dynamics model begins with a problem and a time frame that contribute to the problem. They are listed and their structural relationships sketched the factors with particular attention to characterizing them as levels (or stocks) and rates (or flows) that feed or drain them. Levels and rates must alternate in the model; no level can control another without an intervening rate or any rate influence another without an intervening level.
|Date of creation:||2011|
|Date of revision:|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jesus Fernandez-Villaverde & Juan F. Rubio-Ramirez, 2006.
"Estimating Macroeconomic Models: A Likelihood Approach,"
NBER Technical Working Papers
0321, National Bureau of Economic Research, Inc.
- Jesús Fernández-Villaverde & Juan F. Rubio-Ramírez, 2007. "Estimating Macroeconomic Models: A Likelihood Approach," Review of Economic Studies, Oxford University Press, vol. 74(4), pages 1059-1087.
- Fernández-Villaverde, Jesús & Rubio-Ramírez, Juan Francisco, 2006. "Estimating Macroeconomic Models: A Likelihood Approach," CEPR Discussion Papers 5513, C.E.P.R. Discussion Papers.
- Jesús Fernández-Villaverde & Juan F. Rubio-Ramirez, 2006. "Estimating Macroeconomic Models: A Likelihood Approach," Levine's Bibliography 122247000000000849, UCLA Department of Economics.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:31692. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter)
If references are entirely missing, you can add them using this form.