Calibration in Vensim and noise
Posted: Wed Aug 31, 2011 12:58 pm
Dear All:
I still have some questions left regarding how calibration is handled by Vensim Pro/DSS. But let's just wrap things up as far as have understood calibration in System Dynamics in general. I have enclosed three charts from the excellent paper by Peterson that is part of Jorgen Randers' "Elements of the System Dynamics Method" (1980) that should make this easier to grasp. To sum it up any SD model can be brought into a general mathematical form where you have driving functions (law of motion) for the stocks (e.g. the flow equations = dS/dt = f[Environment(t), S(t),t]) and some behavior function (e.g. how you will measure the system states = g[S(t),Environment(t),t]) - the bold would be vectors to be general.
Now, there can be error entering the model - usually called noise - in either or both functions, e.g. you can have driving noise in the flow equations or measurement error in the behavior function. According to Peterson in the case of driving noise one should stick to reinstating the state variables (e.g. the stocks) at any time you have reference data. In the case of driving and measurement error FIMLOF would be appropriate or probably Bootstrapping (?).
I am not sure whether Vensim will reinstate the state variables (e.g. the procedure suggested by Peterson for OLS which might be generalized to WLS as Vensim will allow weights...) at the points in time that there is reference data available. If Vensim does not reinstate the stocks, would this make sense and how can this achieved efficiently?
Kind regards,
Guido
I still have some questions left regarding how calibration is handled by Vensim Pro/DSS. But let's just wrap things up as far as have understood calibration in System Dynamics in general. I have enclosed three charts from the excellent paper by Peterson that is part of Jorgen Randers' "Elements of the System Dynamics Method" (1980) that should make this easier to grasp. To sum it up any SD model can be brought into a general mathematical form where you have driving functions (law of motion) for the stocks (e.g. the flow equations = dS/dt = f[Environment(t), S(t),t]) and some behavior function (e.g. how you will measure the system states = g[S(t),Environment(t),t]) - the bold would be vectors to be general.
Now, there can be error entering the model - usually called noise - in either or both functions, e.g. you can have driving noise in the flow equations or measurement error in the behavior function. According to Peterson in the case of driving noise one should stick to reinstating the state variables (e.g. the stocks) at any time you have reference data. In the case of driving and measurement error FIMLOF would be appropriate or probably Bootstrapping (?).
I am not sure whether Vensim will reinstate the state variables (e.g. the procedure suggested by Peterson for OLS which might be generalized to WLS as Vensim will allow weights...) at the points in time that there is reference data available. If Vensim does not reinstate the stocks, would this make sense and how can this achieved efficiently?
Kind regards,
Guido