In this article, the author argues that simulation is an undervalued technique to draw conclusions about empirical phenomena in economics. If the aim is to learn about the behavior of socioeconomic systems of interest, simulations have a variety of advantages relative to alternatives such as mathematical (pen and paper) modeling and laboratory experimentation. Therefore, the author has a good prima facie reason to exploit this method more fully. The author proceed by demonstrating that frequently heard arguments against simulations are wrong, and finally the author discusses a number of more specific empirical phenomena, criticisms of one type of simulation methodology used in economics.

advantages, agent-based modeling, computer simulations, economics, empirical phenomena experiments, methodology, simulation, simulations as experiments, socioeconomic systems
dx.doi.org/10.1177/1046878110393941, hdl.handle.net/1765/25861
Simulation and Gaming
Erasmus MC: University Medical Center Rotterdam

Reiss, J.P. (2011). A plea for (good) simulations: Nudging economics toward an experimental science. Simulation and Gaming, 42(2), 243–264. doi:10.1177/1046878110393941