TERMINAL CONDITIONS IN SYSTEM DYNAMICS

When developing system dynamics models, particularly in economics and finance, we have repeatedly encountered requirements to analyze termin al conditions. We believe that this holds more generally for modeling social problems, too. In this article, we show how to solve system dyn amics models when some level variables have predetermined terminal con ditions. With the method presented, it is possible to determine consis tently the initial states of the level variables given the terminal st ate conditions.