check out this: https://www.systemdynamics.org/assets/conferences/2000/PDFs/hovman56.pdf

Hi Waqas,

Please see the links below:

Presentation 1:

https://www.systemdynamics.org/assets/conferences/2000/PDFs/hovman56.pdf

Paper 2:

http://eprints.uthm.edu.my/2390/1/ASHRAF_ZULFA.pdf

Regards

Martin

Hi Waqas,

I also found this previous discussion on the same topic on researchgate:

Question by: Amir Abolhassani

What are the differences (in general or applications) between system dynamic modeling (SDM) and structural equation modeling (SEM)?

I'm going to develop a casual relationship model for productivity in a specific domain based on some data points, 680 observations during 10 years. I was wondering what method do I need to use, SDM or SEM, and why? Thank you.

Link:

https://www.researchgate.net/post/What_are_the_differences_in_general_or_applications_between_system_dynamic_modeling_SDM_and_structural_equation_modeling_SEM

Here was the top answer from: Stéphane Breton - 2 years ago.

Hi Amir,

Excerpts from http://www.fil.ion.ucl.ac.uk/~wpenny/publications/integration.pdf :"...SEMs comprise a set of regions and a set of directed connections. A causal semantics is ascribed to these connections where an arrow from A to B means that A causes B. Causal relationships are thus not inferred from the data but are assumed a priori...".In DCM, "...Experimental inputs cause changes in effective connectivity expressed at the level of neurodynamics, which in turn cause changes in the observed hemodynamics..."Some related references:

• About DCM - Friston et al., "Dynamic causal modelling", 2003: http://www.fil.ion.ucl.ac.uk/~karl/Dynamic%20causal%20modelling.pdf
• About SEM - McIntosh et al., "Structural Equation Modeling and Its Application to Network Analysis in Functional Brain Imaging", 1994: http://booksc.org/dl/1329691/1fc2c4
• Comparison between SEM and DCM - Penny et al., "Modelling functional integration: a comparison of structural equation and dynamic causal models", 2004: http://www.fil.ion.ucl.ac.uk/~wpenny/publications/integration.pdf

Finally, another reference that may be of interest to help you in solving your problem: Kawahara et al., "Analyzing relationships among ARMA processes based on non-Gaussianity of external influences", 2011 ( http://booksc.org/dl/3771886/6ebf5e )Choosing an appropriate method depends mainly on how you perceive the problem. Is the problem more a matter of time series prediction or dynamic system modeling? Or both of them?