The **impact** of one stock on another is a measure of how *changes* in a source stock cause *changes in the motion* of the target stock.

Let *Y* be a source stock influencing a target *X*. A change in *Y* will cause *X* to *accelerate* or *decelerate*, figure 1. This is the impact of Y on X.

*Fig 1. dx/*dt* = y*

The **impact** of *Y* on *X* is **measured** by the acceleration imparted to* X* by *Y*, divided by the rate of change of X. Thus impact is a ratio that measures the curvature in the graph of *X* over time, figure 2. **Constant impact** would give an exponential curve.

*Fig 2: dx/*dt* = y; x0 = 20; y0 = 0*

**Loop impact** is the impact of the feedback loop on the behaviour of each stock in the loop. Specifically, this is the impact on the stock by the previous stock in the loop. For example, in figure 3 the impact of loop *L* on stock *B *is the impact of *A* on *B*.

*Fig 3: Feedback loop with 4 *sto*cks*

The product of all the loop impacts in a feedback loop equals the loop gain, regardless of the complexity of the system dynamics model.

The causal connection between stocks can be interpreted as a force in the Newtonian sense. **Impact **is then the ratio of the force to the momentum of the stock. See the Newtonian framework.

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