1.8) Analytical vs. Dynamic Simulation

Generally the techniques used to model socio-technical systems can be separated into analytical models and dynamic simulation models:

Analytical models (E.g., Input-Output and material flow accounting methods.

• The purpose of analytical models is mostly to analyse and describe the system in different situations where the system state does not change over time (static), and the model keeps a fixed systemic structure (i.e., system elements and relations).

Simulation models (E.g., System Dynamics (SD), Agent-Based Modelling (ABM), Input-Output extended with econometrics methods).

• The purpose of simulation models is to understand the underlying (structural) dynamics of a systemic change where the system state changes as a function of time (dynamic), and the model either keeps a fixed systemic structure (SD), or the structure changes over time (ABM).