Empirical Calibration of Simulation Models
AbstractThis paper discusses how the results of simulation models can be made more reliable and the method of simulating therefore more widely applicable. We suggested to calibrate simulation models empirically and developed a methodology based on Critical Realism in order to so. We suggested combining the procedures of two strands of literature: the empirical underpinning of the assumptions (like in microsimulations) and the empirical check of the implications (like in Bayesian inference). Both these strands of literature are mainly concerned with predicting future developments. We, instead, aim to infer statements about causal relations and characteristics of a set of systems or dynamics, such as, e.g., the development of an industry, that have a general validity for this set of systems or dynamics. In other words, instead of deriving probabilistic predictions of the future and statements of the current situation and dynamics of one single system we developed a methodology to gain general statements about the features of systems and dynamics.
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Bibliographic InfoPaper provided by Max Planck Institute of Economics, Evolutionary Economics Group in its series Papers on Economics and Evolution with number 2004-10.
Length: 16 pages
Date of creation: May 2004
Date of revision:
Other versions of this item:
- Werker, C. & Brenner, T., 2004. "Empirical calibration of simulation models," Working Papers 04.13, Eindhoven Center for Innovation Studies.
- Werker, C. & Brenner, T., 2004. "Empirical calibration of simulation models," Eindhoven Center for Innovation Studies (ECIS) working paper series 04.13, Eindhoven Center for Innovation Studies (ECIS).
- Thomas Brenner & Claudia Werker, 2004. "Empirical Calibration of Simulation Models," Computing in Economics and Finance 2004 89, Society for Computational Economics.
- B40 - Schools of Economic Thought and Methodology - - Economic Methodology - - - General
- C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Bayesian Analysis: General
- C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-06-02 (All new papers)
- NEP-CMP-2004-06-02 (Computational Economics)
- NEP-HPE-2004-06-02 (History & Philosophy of Economics)
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