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| Manas Ratha |
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| The Credit Card Model (D-4683) |
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Author(s):
Manas Ratha |
Subject:
System Dynamics |
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From SDEP. This paper describes a simple system of purchasing with a credit card. The reader is led through the steps of building a system dynamics model by building and simulating the model along with the paper. From Road Maps 9.
Complex Systems Connection: hort and Long Term Conflicts. Managing money, in personal finances or in running a business, often involves setting both short-term and long-term goals. Sometimes goals are in conflict between these timeframes, such as spending now versus saving/investing for future financial well-being. This credit card model shows how future quality of life is reduced by spending over one's means through the use of credit cards. |
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