Abstract for: Dynamics in economic growth: A perspective from System Dynamics
Evidence shows that the paths of growth followed by different countries are diverse. While some countries present a fast growth, other countries show a moderate or even, a slight growth. The first behavior could be justified by means of positive feedback loops that provoke strong accumulations while the second one could be explained through interrelationships of positive and negative feedback loops. To generate process of growth, this paper constructs a system dynamics model considering a causal structure that gathers decisions of consumers, firms and a government in an economy. A simulation exercise obtains different paths of growth taking into account both different governmental strategies and boom and bust cycles. Due to the possibilities that the model offers different political aspects tied to governmental strategies, such as distribution of wealth, degree of corruption or level of education, are examined.