A causal loop diagram is a convenient way of
representing the principal feedback loops and related causal relationships relevant
to a particular problem situation, without distinguishing between the nature
of the interconnected variables. In the first instance causal loop
diagrams serve as preliminary sketches of causal hypotheses. Later, they
enable the essential components and interrelationships to be summarised. Arrows
are used in a causal loop diagram to indicate
direction of causal influences. Signs (+ or -) adjacent the
arrows indicate polarity, that is, how a change in the
variable at the tail of the arrow will produce a
change at the head of the arrow. Fundamentals of causal
loop diagrams are described by Goodman (1989). For a detailed
explanation of causal loop diagrams, see Sterman (2000: 137-190). For
an exposé of the problems in the use of causal
loop diagrams, see Richardson, 1986.
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