ABSTRACT
Although models are abstract representations of reality based on a particular concept or ideal, they enable people to gain a deep understanding of real-life entities and variables through simplified renditions of the natural world. Expressed as computer codes, formulas and equations, models allow them to understand the critical elements of a reality, while leaving out the unnecessary aspects. This chapter focuses on more detail at how models are developed and how they shape peoples' understanding of reality. In social and non-social sciences, experts often use mathematical models to explain a particular reality. These are based on a number of assumptions about the following: variables, parameters, and functional forms. The purpose of the conceptual model is to help people understand how the system operates, and is expressed as a model diagram, consisting of state variables and material flows or causal effects. The conceptual model is then transformed into a quantitative model through the addition of equations.
