This paper establishes the importance and usefulness of a well-defined reference mode as a guide to developing transparent causal structures for system dynamics models. The importance of a transparent causal structure is two-fold: it enhances understanding the model dynamics, and it facilitates communicating to others the model and the insights derived from model simulations. The paper offers a fundamental guideline for selecting transparent causal structures the following: strive for as highly-aggregated and as simple a structure that will generate the dynamics of interest. Ability to follow the guideline depends on a well-defined reference mode, which in turn requires a clear model purpose. To illustrate how a well-defined reference mode can guide the selection of a transparent causal structure, the paper traces the development of a model of the labor market. First, the model purpose is described. Next, the evolution of the basic causal structure is discussed, utilizing the reference mode embodied in the model purpose to select a transparent structure. Finally, the causal influences on model rates of flow are highlighted. To establish the suitability of the selected structure, the paper then summarizes the results of model tests. As the paper shows, the relatively transparent causal structure chosen for the model appears capable of providing insight into the real-world labor market, and of enhancing labor-market policy analysis.

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Date created

• 1976

Type

• Document

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• Processing documentation available at: https://wiki.albany.edu/display/SCA/Processing+Ingested+Digital+Files

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• Creative Commons BY-NC-ND Attribution-NonCommercial-NoDerivs 4.0 International

  
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dbb17ec8affa7ecbcd419a760cb61093

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Collection

System Dynamic Society Records

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Collecting area

• This collection is part of the University Archives