Policy advice derived from simulation models

Brenner, T.; Werker, C.

Policy advice derived from simulation models

Title

Policy advice derived from simulation models

Author

Brenner, T.
Werker, C.

Faculty

Technology, Policy and Management

Date

2009-01-07

Abstract

When advising policy we face the fundamental problem that economic processes are connected with uncertainty and thus policy can err. In this paper we show how the use of simulation models can reduce policy errors. We suggest that policy is best based on socalled abductive simulation models, which help to better understand how policy measures can influence economic processes. We show that abductive simulation models use a combination of theoretical and empirical analysis based on different data sets. This helps inferring empirically reliable and meaningful statements about how policy measures influence economic processes. By way of example we show how research subsidies by the government influence the likelihood that a regional cluster emerges.

Subject

Policy Advice
Simulation Models
Uncertainty

To reference this document use:

http://resolver.tudelft.nl/uuid:d48edc92-c960-4f3c-967b-a92dc28cb1cc

Publisher

Delft University of Technology

ISSN

1877-3834

Source

Economics and Management of Innovation, EMI Discussion Paper Series #2009-01

Part of collection

Institutional Repository