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The Empirical Validation of an Agent-based Model

  • Pasquale Cirillo

    (Institute of Mathematical Statistics and Actuarial Sciences, University of Bern, Sidlerstrasse 5, CH-3012, Bern, Switzerland.)

  • Mauro Gallegati

    (Department of Economics, Università Politecnica delle Marche, Piazzale Martelli 8, IT-60121, Ancona, Italy.)

The aim of this paper is to empirically validate the agent-based macroeconomic model of Gaffeo et al. [2008]. We show that the microsimulated version of the model is able to replicate actual data with a satisfactory degree of precision. From a theoretical point of view, our validation approach is made up of three different steps: a calibrated microsimulation of the model with actual data, an ex-post descriptive validation of the results, and a simple calibration exercise to ameliorate the goodness-of-fit of the model. The validation procedure of this paper has been performed using Italian data.

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Article provided by Palgrave Macmillan & Eastern Economic Association in its journal Eastern Economic Journal.

Volume (Year): 38 (2012)
Issue (Month): 4 ()
Pages: 525-547

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Handle: RePEc:pal:easeco:v:38:y:2012:i:4:p:525-547
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