The process by which values of the normalizing (or free) parameters are determined so as to replicate the observed flow values incorporated in the social accounting matrix (SAM), assuming all the equations describing the equilibrium in the system (model) are met in the benchmark period. This process is augmented by literature search (and on occasion econometric estimation) for key model parameters, whose values are required before the calibration can proceed. In practice, due to the wide spread use of CES functions in applied models, "key" parameters are more or less synonymous with elasticities (Mansur and Whalley).
The process of developing the model parameters using observed transportation data.
(model application): Process of refining the model representation of the hydrogeologic framework, hydraulic properties, and boundary conditions to achieve a desirable degree of correspondence between the model simulation and observations of the ground-water system.