Causal Loop Diagrams and Automated Identification of Feedbacks in Economic Systems

Abstract

Systems dynamics is a universal and widely used discipline that examines systems’ behaviour over time. The casual loop diagram represents one of the commonly applied tools during the analysis of various economic problems. This paper presents a tool facilitating the work of managers who are forced to work with different perspectives on one shared issue. The created application enables mechanical analysis of a diagram created in the Vensim Pro application. The program is used for fast validation of models and checking the correctness of the structure. Based on the similarity of the structure, shared or different loops can be highlighted. The results can serve as a basis for developing strategies, policies or group discussions directed at analysing existing economic systems