Abstract

Stylized factsStylized fact are often evoked in a very casual manner in the context of model validation, a practice that stands in contrast with their popularity and their potential. Given this situation, it is the aim of this chapter to characterize the concept of stylized facts from an epistemological perspective, which includes clarification of interesting ideas behind the concept, development of a definition and discussion of its possible uses for validating simulation models. The latter includes not only output validationOutput validation but input validationInput validation and theory validation as well. Second, the need for a more systematic derivation of stylized facts is addressed. For this purpose, several approaches to establish stylized facts are presented and assessed. In this context, an additional approach is presented, which tries to overcome the shortcomings of current practice. Together, these interrelated aims represent an attempt to strengthen the basis for the validation of simulation models using stylized facts.