The EURACE Project

An agent-based software platform for European economic policy
design with heterogeneous interacting agents: new insights from a
bottom up approach to economic modelling and simulation.

Start date: 1st September 2006
End date: 31st August 2009


Papers and articles

Summary of the project

Macroeconomic policy design plays a fundamental role in social welfare and requires a coordinated application of economic policy measures, e.g., fiscal and monetary strategies, knowledge exchange, R&D incentives etc.. Generally speaking, the interplay of such different measures is not completely understood and macroeconomic design follows a classical approach. Conversely, there is considerable interest in the development of an alternative paradigm to the rational representative agent model.
This project tackles this complex problem and proposes an innovative approach to macroeconomic modelling and economic policy design within the agent-based computational economics framework. The project objectives are characterized by scientific, technological and societal scopes. From the scientific point of view, the main effort regards the study and the development of multi-agent models that reproduce, at the aggregate economic level, the emergence of global features as a self-organized process from the complex pattern of interactions among heterogeneous individuals.

The following two major scientific objectives can be identified:

From the technological point of view, the project will develop, with advanced software engineering techniques, a software platform in order to realize a powerful environment for large-scale agent-based economic simulations. Key issues will be the definition of formal languages for modelling and for optimizing code generation, the development of scalable computational simulation tools and the standardization of data with easy to use human-machine interfaces.
The following two major technological objectives can be identified:

From the social point of view, the agent-based software platform for the simulation of the European economy will have an outstanding impact on the economic policy design capabilities of the European Union. It will be a powerful tool, enabling to perform what-if analysis, optimizing the impact of regulatory decisions that will be quantitatively based on European economy scenarios.

Project Partners:

Last updated: 10 September 2008
Sander van der Hoog