Empirical Validation of Agent-Based Models: Alternatives and Prospects

This paper addresses a set of methodological problems arising in the empirical validation of agent-based (AB) economics models and discusses how these are currently being tackled. These problems are generic for all those engaged in AB modelling, not just economists. The discussion is therefore of direct relevance to JASSS readers. The paper has two objectives. The first objective is the identification of a set of issues that are common to all modellers engaged in empirical validation. This gives rise to a novel taxonomy that captures the relevant dimensions along which AB modellers differ. The second objective is a focused discussion of three alternative methodological approaches being developed in AB economics — indirect calibration, the Werker-Brenner approach, and the history-friendly approach — and a set of (as yet) unresolved issues for empirical validation that require future research.