Loop Analysis for Qualitative Simulation

Abstract. In this work we expound the use of Qualitative Simulation on the IS-LM macroeconomic model. Each one of the submodels can be effectively simulated by QS algorithms. However, in order to uniquely identify all the qualitative aspects of this second order system, we apply the Loop Analysis technique. The perspective is that, by establishing some requirements at the modeling stage, we can structure the modeling process and apply some more classical qualitative tools, specifically Loop Analysis.