Simulating the financial effects of major corporate policy changes via a discrete state system model

摘要

Techniques originally developed to model and analyze complex systems of interacting physical components have recently been adapted for use in analyzing economic systems. These techniques can be applied to any phenomenon which can be identified as a collection of components interacting at clearly defined interfaces, as long as the behavioral characteristics of these components can be described mathematically, in terms of common flow and/or propensity variables. A system model thus developed can be utilized for various kinds of analysis, including simulation. In this study the business firm is viewed as a system of funds flows, both environmental, and between several internal asset collection points. A FORTRAN program is developed from this system model to simulate financial effects of three selected policy changes.