Limitations of Static Systems Analysis of Public Policy Decisions

Typical systems modeling and analysis approaches frequently involve the use of static diagramming techniques. Such techniques are useful for many applications including the modeling and analysis of business processes and data flows. These same methods are sometimes used to model complex dynamic systems such as those pertaining to economics and the effects of public policy changes. The paper will discuss public policy in terms of basic classical engineering linear and nonlinear modeling techniques. It will point out some cases where static models fail to capture important system responses which can lead to poor decisions and system instability. The paper will discuss modeling considerations that will provide a higher order of fidelity than static systems for purposes of modeling the effects of public policy decisions. The paper will address the question "Can policy planners afford to neglect the effects that are not accounted for in traditional static analyses?".