Towards a Validation Methodology for Macroeconomic Agent-Based Models

Sebastiaan Tieleman ()
Additional contact information
Sebastiaan Tieleman: Utrecht University

Computational Economics, 2022, vol. 60, issue 4, No 13, 1507-1527

Abstract: Abstract Agent-based models provide a promising new tool in macroeconomic research. Questions have been raised, however, regarding the validity of such models. A methodology of macroeconomic agent-based model (MABM) validation, that provides a deeper understanding of validation practices, is required. This paper takes steps towards such a methodology by connecting three elements. First, is a foundation of model validation in general. Second is a classification of models dependent on how the model is validated. An important distinction in this classification is the difference between mechanism and target validation. Third, is a framework that revolves around the relationship between the structure of models of complex systems with emergent properties and validation in practice. Important in this framework is to consider MABMs as modelling multiple non-trivial levels. Connecting these three elements provides us with a methodology of the validation of MABMs and allows us to come to the following conclusions regarding MABM validation. First, in MABMs, mechanisms at a lower level are distinct from, but provide input to higher levels of mechanisms. Since mechanisms at different levels are validated in different ways we can come to a specific characterization of MABMs within the model classification framework. Second, because the mechanisms of MABMs are validated in a direct way at the level of the agent, MABMs can be seen as a move towards a more realist approach to modelling compared to DSGE.

Keywords: Model validation; Agent-based models; Complexity economics; Economics methodology; Macroeconomics (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s10614-021-10191-w Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:compec:v:60:y:2022:i:4:d:10.1007_s10614-021-10191-w

Ordering information: This journal article can be ordered from
http://www.springer. ... ry/journal/10614/PS2

DOI: 10.1007/s10614-021-10191-w

Access Statistics for this article

Computational Economics is currently edited by Hans Amman

More articles in Computational Economics from Springer, Society for Computational Economics Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().