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System Dynamics and Its Contribution to Economics and Economic Modeling

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  • First Online:
System Dynamics

Part of the book series: Encyclopedia of Complexity and Systems Science Series ((ECSSS))

  • Originally published in

Glossary

Feedback:

Feedback is the transmission and return of information about the amount of “stuff” (information or material) that has accumulated in a system’s stocks. Information travels from a stock back to its flow(s), either directly or indirectly, creating a feedback loop. When the return of this information reinforces the behavior of the stocks residing within the loop, the loop is said to be positive. Positive loops are responsible for the growth (or decline) of systems over time.

Negative feedback loops represent goal seeking behavior in complex systems. When a negative loop detects a gap between the amount of “stuff” (information or material) in a system’s stock and the desired amount of “stuff,” it initiates corrective action. If this corrective action is not significantly delayed by one or more additional stocks, the amount of “stuff” in the stock will smoothly adjust to its goal. If the corrective action is delayed by one or more additional stocks, however, the amount of...

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Author information

Authors and Affiliations

  1. Department of Social Science and Policy Studies, Worcester Polytechnic Institute, Worcester, MA, USA

    Michael J. Radzicki

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  1. Michael J. Radzicki
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Correspondence to Michael J. Radzicki .

Editor information

Editors and Affiliations

  1. School of Management, University of Bristol, Bristol, UK

    Brian Dangerfield

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Radzicki, M.J. (2020). System Dynamics and Its Contribution to Economics and Economic Modeling. In: Dangerfield, B. (eds) System Dynamics. Encyclopedia of Complexity and Systems Science Series. Springer, New York, NY. https://doi.org/10.1007/978-1-4939-8790-0_539

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