@article{article_1002972, title={Budget-performance simulations: A Pedagogical example}, journal={İstanbul Ticaret Üniversitesi Sosyal Bilimler Dergisi}, volume={20}, pages={1688–1703}, year={2021}, DOI={10.46928/iticusbe.1002972}, author={Kara, Ahmet}, keywords={: Budget., Simulation., A pedagogical example.}, abstract={Purpose: This paper has two main purposes, the first of which is to present a simple pedagogical example of budget-performance simulations that can be used for instructional purposes. The second purpose is to formulate a research hypothesis about the effects, on the overall performance, of (i) the overall level of physical and academic-managerial human capital investments and (ii) the allocation of resources between physical capital and academic-managerial human capital.
Method: We have employed a system dynamics method so as to construct a simplified setup (model) where some pedagogically illustrative components of the budget are specified and linked to an elementarily exemplified performance function. We have then simulated the investment-based performance trajectories to demonstrate the findings of the paper. We have shown how to undertake a policy-based optimization as well. The method (system dynamics) we have chosen is suitable for the modeling of complexly-interwoven optimization and simulation processes.
Findings: Through simulation and policy-based performance optimization exercises, we have demonstrated that the physical and academic-managerial capital investments matter and there exists an optimal allocation of resources that maximizes the university performance.
Originality: There is a need for a comprehensive and in-depth examination/inquiry of the performance optimization and simulation processes associated with the higher education institutions. This article represents a modest contribution to such an inquiry.}, number={42}, publisher={Istanbul Ticaret University}