In Taiwan, the low birth rate has become one of the most critical problems faced by the government and educational institutions at all levels.The enrolling student number of kindergartens perhaps is the most directly affected by such trend. The purpose of this study aims at constructing asystem dynamics model to depict the relationships between the preschoolchildren and their stakeholders for deducing the evolutionary trends of,and the interactions of, governmental policies and the operations of theearly childhood education institutions. Through the interpretation of policies and simulation analysis of the twenty-year growth trend related to thechild population in Taiwan, this study found that governmental policiesand the promotion of education and care services have a positive effect onthe growth of all levels of kindergarten classes. Besides, the relationshipbetween the education and care service staff and the kindergarten play acausal balancing role in our proposed model. We suggest that the systemdynamics model proposed by this study can help to observe the dynamicrelationships formed by the stakeholders in preschool education and caresystem based on the "joint responsibility" of Taiwan's early childhoodeducation.