System Dynamics vs Econometric

[nadia]

Hi everybody,

Where I can find information about ecenometric vs system dynamics (sd)? In terms of advantages and disadvantages of sd over econometric model. Thank you in advance.


Regards,
Nadia

[tomfid]

John Sterman's Skeptic's Guide is a good place to start.
http://jsterman.scripts.mit.edu/On-Line ... 991Skeptic

There are a lot more dynamic econometric models these days, and have been good statistical tools in SD (particularly Vensim) for a long time, so the two areas are starting to overlap.

There are still big differences in typical practice. You'll find a lot more static/linear work in econometrics, with assumptions of equilibrium and other silly handwaving. Sometimes it's a useful complement to SD, but if I had to choose one or the other, I'd go with SD.

The real question, though, is what do you want to model, and what kind of answers do you hope to get?

Tom

[Monte]

Hi,

You can find such information in classic SD books.
Please see Meadows' The Unavoidable A Priori in Rander's Elements of System Dynamics Method.