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Public Policy, System Dynamics Applications to

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Encyclopedia of Complexity and Systems Science

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Definition of the Subject

System dynamics is an approach to problem understanding and solution. It captures the complexity of real-world problems through the explication offeedback among endogenous variables. This feedback, and the delays that accompany it, often drive public sector programs towards unanticipated orunsatisfactory results. Through formal and informal modeling, System Dynamics‐based analysis explicates and opens these feedback structures todiscussion, debate and consensus building necessary for successful public sector policymaking.

Introduction

In the 50 years since its founding, System Dynamics has contributed to public policy thought in a number of areas. Major works, such asUrban Dynamics [35] and Limits toGrowth [61] have sparked controversy and debate. Other works in the domains of militarypolicy, illegal drugs, welfare reform, health care, international development, and education have provided deep insight into complex social problems. Theperspective of System...

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Notes

  1. 1.

    The Workload Ratio and Quality of Work are normalized variables. This means that they are measured against some predetermined standard. Therefore, when these two variables are equal to 1 they are operating in the desired state. Depending on the definition of the variable, values below or above 1 indicate when they are operating in a desired or undesired state. For example, Quality of Work above 1 indicates that quality is high, relative to the predetermined normal. However, Quality of Work below 1 indicates an undesirable state.

Abbreviations

Causal loop diagram:

A diagrammatic artifact that captures the causal model and feedback structure underlying a problem situation. Commonly used as a first-cut tool to identify major stakeholder concerns and interactions. These diagrams are often precursors to formal models.

Dynamic modeling:

Formal examination of the behavior of a system over time. Contrast with point‐estimation, which attempts to predict an average outcome.

Feedback:

A relationship where two or more variables are linked over time so that the influence of one variable on a second will later affect the state of the first. If the influence is such as to increase the state of the first over time, the feedback is termed reinforcing. If the influence is such as to decrease the state of the first, it is termed balancing.

Formal model:

The representation of a system structure in mathematical form. Contrast with causal model, which represents structure without the underlying mathematics.

Mental model:

The representation of a problem's structure as possessed by an expert in a particular domain. Mental models are often intangible until explicated by the expert.

Public policy:

Any and all actions or non‐actions, decisions or non‐decisions taken by government, at all levels, to address problems. These actions, non‐actions, decisions or non‐decisions are implemented through laws, regulations and the allocation of resources.

Group model building (GMB):

An approach to problem definition that asks multiple experts and major stakeholders to provide collective insights into the structure and behavior of a system through facilitated exercises and artifacts. GMB is often used to explicate the contrasting mental models of stakeholders.

Stakeholder:

An individual or group that has significant interest or influence over a policy problem.

System dynamics:

An analytic approach to problem definition and solution that focuses on endogenous variables linked through feedback, information and material delays, and non‐linear relationships. The structure of these linkages determines the behavior of the modeled system.

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Author information

Authors and Affiliations

  1. Rockefeller College of Public Affairs and Policy, University at Albany, Albany, USA

    David F. Andersen

  2. School of Business, University at Albany, Albany, USA

    Eliot Rich

  3. Initiative for System Dynamics in the Public Sector, University at Albany, Albany, USA

    Roderick MacDonald

Authors
  1. David F. Andersen
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  2. Eliot Rich
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Editors and Affiliations

  1. RAMTECH LIMITED, 122 Escalle Lane, Larkspur, CA, 94939, USA

    Robert A. Meyers Ph. D. (Editor-in-Chief) (Editor-in-Chief)

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Andersen, D.F., Rich, E., MacDonald, R. (2009). Public Policy, System Dynamics Applications to. In: Meyers, R. (eds) Encyclopedia of Complexity and Systems Science. Springer, New York, NY. https://doi.org/10.1007/978-0-387-30440-3_421

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