A causal loop diagram (CLD) is a causal diagram that aids in visualizing how interrelated variables affect one another. The diagram consists of a set of nodes representing the variables connected together. The relationships between these variables, represented by arrows, can be labelled as positive or negative.
Example of positive reinforcing loop:
The amount of the Bank Balance will affect the amount of the Earned Interest, as represented by the top blue arrow, pointing from Bank Balance to Earned Interest.
Since an increase in Bank balance results in an increase in Earned Interest, this link is positive, which is denoted with a ""+"".
The Earned interest gets added to the Bank balance, also a positive link, represented by the bottom blue arrow.
The causal effect between these nodes forms a positive reinforcing loop, represented by the green arrow, which is denoted with an "R".
Read more about Causal Loop Diagram: History, Positive and Negative Causal Links, Reinforcing and Balancing Loops
Famous quotes containing the words causal and/or diagram:
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—Doris Lessing (b. 1919)