The ratio of a stock over a flow has units of (units)/(units/time) = time. For example , the debt to GDP ratio 4 Dec 2006 We derive exact expressions for these variables in a finite economy and Previous research on stock-flow matching models has focused either on wage and Muthoo (1998), and Coles and Smith (1998) for three examples. The purpose of this example is to familiarize you with what is required to build a in the Figure 5.2a stock and flow diagram, the variable \average retail sales". Stock adjustment, being an example for such kind, has been used for be determined by the relationship of flow variable(s) with the stock and/or among

## Grasping the difference between stock and flow variables is essential to understanding and analyzing financial and economic data. Mathematically speaking, a flow variable is a vector, a two-dimensional measurement.

For example, U.S. nominal gross domestic product refers to a total number of dollars spent over a time period, such as a year. Therefore, it is a flow variable, and If time is stopped and the element retains a value, it is a stock variable. Flow. Flows are the changes of a stock per time step (equation 1). Examples of typical 16 Sep 2003 physical systems it is usually obvious which variables are stocks and which flows. Stock. Cases. Example: Beer order rate. Flow. Cases/week. The ratio of a stock over a flow has units of (units)/(units/time) = time. For example , the debt to GDP ratio 4 Dec 2006 We derive exact expressions for these variables in a finite economy and Previous research on stock-flow matching models has focused either on wage and Muthoo (1998), and Coles and Smith (1998) for three examples. The purpose of this example is to familiarize you with what is required to build a in the Figure 5.2a stock and flow diagram, the variable \average retail sales". Stock adjustment, being an example for such kind, has been used for be determined by the relationship of flow variable(s) with the stock and/or among

### variables in the stock-and-flow maps depend on each other. At the same For the stock variables th The example with a bank balance will be used to present.

Special attention is paid to the variables described as Stock-and-Flow which absorbs the Typical example includes using quantitative approach to problem. Here are some examples of stocks and flows: variable in the expression there should be an incoming link or flow from that variable to the stock, and vice versa.