1 Progress in Eigenvalue Elasticity Analysis as a Coherent Loop Dominance Analysis Tool

Formal model analysis tools are essential elements in understanding how structure drives behavior. Conventional model analysis relies heavily on a time-consuming experimental iterative process. Current formal tools are not mature enough for application to most models. This paper presents a loop dominance analysis approach based on eigenvalue elasticity analysis. Eigenvalue elasticity analysis, although a potentially strong formal model analysis tool, has drawn criticisms over the years for a number of reasons. The approach proposed in this study attempts to bring proper solutions to the issues raised by those criticisms. To this end, a ten-step procedure is proposed. Among the most prominent features of the proposed procedure is the ability to track the influences of feedback loops on a specific variable of interest. Others include the ability to track the loop dominance dynamics over time and an attempt to the codification of the proposed features of the eigenvalue elasticity analysis. Several programming codes, written for this purpose in mind, are presented in the paper. The application of the proposed approach is demonstrated using a simple economic long wave model and two other models, all chosen from earlier methodological studies on formal loop dominance analysis. The results of these applications also facilitate the comparison of the proposed approach to other formal model analysis tools