by Magne Myrtveit Normally, we try to aggregate discreteness in System Dynamics (SD) models by making continuous flows. This is a good modeling practice, but in some cases discreteness may have a significant influence on system behavior (see note). Consequently, we need to model such discreteness to explore its impact on behavior. The System Dynamics (SD) technology was originally designed with...

Since Newton (1642-1727) continuous time modeling by means of differential equations is the standard approach of dynamic phenomena in natural science. It is argued that most processes in behavioral science also unfold in continuous time and should be analyzed accordingly. After dealing with the essentials of stochastic differential equation modeling of panel data by means of structural equation...