With few exceptions, the business firm has remained beyond
the limits of true econometric model building. Business mode-
lers tend to build corporate models following the somewhat
different, perhaps more pragmatic tradition of systems simula-
tion. The following classificatory scheme compares the princi-
pal differences between the macromodel econometric and busi-
ness simulation modeling approaches.

These distinctions are largely self-explanatory, although the most
important ones will be elaborated in the following discussion of
corporate modeling. It is noteworthy, however, that the bot-

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