The MODEL Procedure

Simulation Details

The solution given the vector k, of the following nonlinear system of equations is the vector u which satisfies this equation:

$q(u, k, {{\theta}}) = 0$

A simulation is a set of solutions u_t for a specific sequence of vectors k_t.

Model simulation can be performed to

check how well the model predicts the actual values over the historical period
investigate the sensitivity of the solution to changes in the input values or parameters
examine the dynamic characteristics of the model
check the stability of the simultaneous solution
estimate the statistical distribution of the predicted values of the nonlinear model using Monte Carlo methods

By combining the various solution modes with different input data sets, model simulation can answer many different questions about the model. This section presents details of model simulation and solution.

Solution Modes

Goal Seeking: Solving for Right-Hand-Side Variables

Numerical Solution Methods

Numerical Integration

Limitations

SOLVE Data Sets

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