System Dynamics as Method for Evaluation of Development Activities of Municipalities

Abstract

The paper deals with the classification of main factors of municipal development. The impacts of mentioned factors on the development of municipalities are not unified. In real the factors influence the incidence of other factors. The solution for evaluation of impacts of development activities may be the method of system dynamics. The ability to search many mutual relations and feedbacks is the main contribution of this method. This method uses for capture of these situations the graphical display of the model in form of stock and flow diagrams and causal loops diagrams. It is possible to simulate the created model after substitution of mathematical equations which capture the relation among partial magnitudes. The interception of development of municipality is the solution of this method.