This paper revisited the key advances on System Dynamics modeling about traditional macro-economic models and economic growth structures, and then tries to elaborate a new model based on the endogenous growth theory that incorporates new growth factors, relevant to knowledge/technology as well as the Environment, into traditional growth models. Accordingly, the new model augments the acceleration and multiplier loops and the balancing ones representing market clearing mechanism with a simple numerical example. The authors thus provides macroeconomic System Dynamics analysts with a milestone to model macro-economic structures reflecting on traditional and cutting-edge theories on sustainable economic growth and general equilibrium modeling.

This study explores the limitation in making a causal model through an existing case and proposes an alternative plan to improve a theoretical system of causation modeling. To make a dynamic and actual model, several principles are needed such as reality based analysis of system structures and dynamics, consistent expression of causations, conversion of numerical formulas to causal relations, classification and arrangement of variables by size of concept, etc. However, it is hard to find cases to apply these considerations from existing models in System Dynamics. Therefore, this study verifies errors of derived models from literatures and proposes principles and guides that should be considered to make a sound dynamic model on a causal map. It contributes to making an opportunity for exciting public opinion to improve theory about causal maps, yet it has limitation that the study does not advance forward to the experimental step. For future study, it plans to make up by classifying and leveling causal variables, developing a dynamic BSC model.

We try to use system dynamics to forecast the demand/supply and price, also transportation fare for iron ore. Iron ore is very important mineral resource for industrial production. The structure for this system dynamics shows non-linear pattern and we anticipated the system dynamic method will catch this non-linear reality better than the regression analysis. Our model is calibrated and tested for the past 6 year monthly data (2003-2008) and used for next 6 year monthly data(2008-2013) forecasting. The test results show that our system dynamics approach fits the real data with higher accuracy than the regression one. And we have run the simulations for scenarios made by possible future changes in demand or supply and fare related variables. This simulations imply some meaningful price and fare change patterns.

The ever-increasing government budget constraints have led to a continued decline in the increase rate for defense spending, and the government's 5-year National Fiscal Management Plan has served to reinforce the verification and validation procedures for the Force Improvement Programs (FIP) budget requirements and performance. Additionally, as large programs are controlled in accordance with the Total Program Cost Management Guidelines, timely and credible feasibility study and performance measurement need to be conducted. Due to these internal and external circumstances, needs have surged for feasibility and economic effectiveness study for big ticket projects in the FIP sector, with an increasing number of studies conducted by external research institutes. However, questions have been raised regarding the credibility and thoroughness of the program analyses performed by these research institutes due to various restrictions. This paper analyzes and identifies the structural limitations and problems using a systems thinking approach, and examines the systemic characteristics of the program analysis system. It also presents policy intervention recommendations based on the theory of systems thinking, a method to regularize and reinforce the program analysis system. Policy interventions recommended to ensure alignment of the external studies to the clear analysis objectives and resolve the bottlenecks in the external analysis include training those in charge of external study commissioning for a short term intervention, and increasing the number of research institutes and consulting agencies utilizing analysis and evaluation experts who transition to the private sector from the military for a long term intervention. additionally presented are strategies and policy alternatives to best utilize these policy interventions. They will contribute to the stable funding of Force Improvement Programs and efficient utilization of defense budget.

In this paper, a structural similarity between traditional oriental philosophy and systems thinking is discussed. The polarity of causal relationship and feedback loops can be interpreted in terms of yin and yang of oriental philosophy. A positive feedback loop which is linked to the yang is a force or mechanism that accelerates changes in systems. A negative feedback loop which is linked to the yin can be interpreted as a force oppressing any changes. In this sense, systems thinking can be related to the oriental philosophy. With this linking pin between them, systems thinking can be introduced and educated more friendly in oriental society. Furthermore, systems thinking can get a set of rich insights from the oriental philosophy. This paper suggests a linking leverage between systems thinking and oriental philosophy.

This paper explores the ways by which the authority concerned with nuclear energy policy-making in Korea can strengthen its organisational sustainability from long-term perspective. In doing so, it applies the system dynamics approach to predict what would happen to the organisational sustainability of the nuclear energy authority in the future. In the process of analysis, it also draws causal loop map of components contained in the simulation model and constructs user-interface simulation model. It shows different predicted future values regarding organisational sustainability of the nuclear energy authority in Korea and puts forward some policy implications for practitioners and academics involved in nuclear energy policy.