The words without arrows are loop labels. if the variable in which the link starts increases, the other variable decreases and vice versa. A positive causal link can be said to lead to a change in the same direction, and an opposite link can be said to lead to change in the opposite direction, i.e. A link marked - indicates a negative relation where an increase in the causal variable leads, all else equal, to a decrease in the effect variable, or a decrease in the causal variable leads, all else equal, to an increase in the effect variable. A link marked + indicates a positive relation where an increase in the causal variable leads, all else equal, to an increase in the effect variable, or a decrease in the causal variable leads, all else equal, to a decrease in the effect variable.
The words with arrows coming in and out represent variables, or quantities whose value changes over time and the links represent a causal relationship between the two variables (i.e., they do not represent a material flow). Closed loops, or causal feedback loops, in the diagram are very important features of CLDs. Causal loop diagrams are accompanied by a narrative which describes the causally closed situation the CLD describes. The diagram consists of a set of words and arrows. Example of positive reinforcing loop: Bank balance and Earned interestĪ causal loop diagram ( CLD) is a causal diagram that aids in visualizing how different variables in a system are causally interrelated.
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