Policy Advice Derived from Simulation Models
AbstractWhen advising policy we face the fundamental problem that economic processes are uncertain. Consequently, policy can err. In this paper we show how the use of simulation models can reduce policy errors by inferring empirically reliable and meaningful statements about economic processes. We suggest that policy is best based on so-called abductive simulation models, which help to better understand how policy measures can influence economic processes. We show that abductive simulation models use a combination of theoretical and empirical analysis based on different data sets. By way of example we show what policy can learn with the help of abductive simulation models, namely how policy measures can influence the emergence of a regional cluster.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Journal of Artificial Societies and Social Simulation in its journal Journal of Artificial Societies and Social Simulation.
Volume (Year): 12 (2009)
Issue (Month): 4 ()
Contact details of provider:
Policy Advice; Simulation Models; Uncertainty; Methodology;
Other versions of this item:
- C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
- B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Institutional; Evolutionary
- H89 - Public Economics - - Miscellaneous Issues - - - Other
- B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Schwerin, Joachim & Werker, Claudia, 2003. "Learning innovation policy based on historical experience," Structural Change and Economic Dynamics, Elsevier, vol. 14(4), pages 385-404, December.
- Thomas Brenner & AndrÃ© MÃ¼hlig, 2007. "Factors and Mechanisms Causing the Emergence of Local Industrial Clusters - A Meta-Study of 159 Cases," Papers on Economics and Evolution 2007-23, Max Planck Institute of Economics, Evolutionary Economics Group.
- Thomas Brenner, 2001. "Simulating the Evolution of Localised Industrial Clusters - an Identification of the Basic Mechanisms," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 4(3), pages 4.
- Falk, Rahel, 2007. "Measuring the effects of public support schemes on firms' innovation activities: Survey evidence from Austria," Research Policy, Elsevier, vol. 36(5), pages 665-679, June.
- Andrew Brown & Gary Slater & David A. Spencer, 2002. "Driven to abstraction? Critical realism and the search for the 'inner connection' of social phenomena," Cambridge Journal of Economics, Oxford University Press, vol. 26(6), pages 773-788, November.
- Pavitt, Keith, 1984. "Sectoral patterns of technical change: Towards a taxonomy and a theory," Research Policy, Elsevier, vol. 13(6), pages 343-373, December.
- Thomas Brenner & Claudia Werker, 2007. "A Taxonomy of Inference in Simulation Models," Computational Economics, Society for Computational Economics, vol. 30(3), pages 227-244, October.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Nigel Gilbert).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.