ERIC Number: ED158788
Record Type: RIE
Publication Date: 1978
A System Dynamics Approach to Understanding Cost and Revenue Interactions in the Community College Financial System.
Howard, James E.
After identifying the components of a community college financial system as enrollment, costs, revenues and tuition, this paper addresses the need for a system dynamics analysis of a California community college district. This systems approach would assess the possible effects of alternative policies on the characteristic behavior modes of the interrelated district components and construct a simple but complete system dynamics model to facilitate the assessment. Building the finance simulation model involves five basic steps: determining the issues or problems to be modeled; drawing a causal-loop diagram; drawing a dynamics model (DYNAMO) flow diagram to demonstrate the relationship between components; writing out DYNAMO equations to relate quantity to the time rate change of that quantity as a computer integration tool; and test for sensitivity and make simulation runs. With the aid of computer simulation, the model can identify both the magnitude and the timing of the effects of policy changes within the model. Policy alternatives may then be tested on the model of the system before being attempted within the actual financial system itself. A bibliography and a listing of equations for the model are included. (TR)
Publication Type: Reports - Research
Education Level: N/A
Authoring Institution: N/A