Confronting agent-based models with data: Methodological issues and open problems

Abstract

This paper addresses the problem of finding the appropriate method for conducting empirical validation in AB models. We identify a first set of issues that are common to both AB and neoclassical modellers and a second set of issues which are specific to AB modellers. Then, we critically appraise the extent to which alternative approaches deal with these issues. In particular, we examine three important approaches to validation that have been developed in AB economics: indirect calibration, the Werker-Brenner approach, and the history-friendly approach. Finally, we discuss a set of open questions within empirical validation. © 2006 Springer-Verlag Berlin Heidelberg.