System Dynamics is ,one of the most suitable methods to analyze Social Economic System problems which have many dynamic interacting factors. System Dynamics (S.D.) analyzes those systems through the dynamic analysis of information feedback loops of many interacting factors of those systems. Actually the examples of S .D. analysis in the field of urban problems, natural resource problems, medicare problems, transportation problems, etc. are increasing those days. But so far numbers of applications are limited, and rules and methods of application are not established yet. And also the applications of S.D. to the unsuitable field are increasing. Those are becoming the source of misunderstanding of S.D. I have been studying the application of S.D. to Social Economic System problems for the past two years and trying to find out suitable rules ,and methods of application. This is a report of this study. In the first place I will write about the most basic ideas of application of S.D. to Social Economic System problems, and then introduce a part of my study of the problems of improvement of medicare insurance system of: Japan, and finally show the important points of application of those ideas to those problems .
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