Credit card spending limit and personal finance: system dynamics approach

Abstract

Abstract.Credit cards have become one of the major ways for conducting cashless transactions. However, they have a long term impact on the well being of their owner through the debt generated by credit card usage. Credit card issuers approve high credit limits to credit card owners, thereby influencing their credit burden. A system dynamics model has been used to model behavior of a credit card owner in different scenarios according to the size of a credit limit. Experiments with the model demonstrated that a higher credit limit approved on the credit card decreases the budget available for spending in the long run. This is a contribution toward the evaluation of action for credit limit control based on their consequences.

Fixes that Fail: A system archetype for examining racialized structures within the food system

“…Within system dynamics modeling, system archetypes provide a useful heuristic for illuminating common patterns of problematic behavior within a system, over time (Pejic‐Bach et al., 2014; Wolstenholme, 2003). System archetypes can be used as a narrative interpretive tool for exploring system problems to identify solutions that transform the system‐as‐a‐whole (Kim, 2013).…”