forecasting. To further improve the forecasting, we modify our calibration approach by increasing the trader information set …In this paper we introduce a calibration procedure for validating of agent based models. Starting from the well …-known financial model of Brock and Hommes 1998, we show how an appropriate calibration enables the model to describe price time series …

model. We illustrate the proposed methodology with a real-time forecasting exercise, using a simple neo-Keynesian dynamic …