The EURACE Project is a FP6 European Project involving a collaboration with researchers from various backgrounds - computer scientists and economists - to work together deriving a simulated model of the European economy using advanced efficient software and parallelisation technologies.

EURACE Partners

  • Universita degli Studi di Genova, Italy
  • Universite de la Mediterranee, France
  • TUBITAK National Research Institute of Electronics and Cryptology, Turkey
  • Universita Politecnica delle Marche, Italy
  • University of Sheffield, UK
  • Universita degli Studi di Cagliari, Italy
  • Council for the Central Laboratory of the Research Councils, UK
  • University of Bielefeld, Germany
  • Associate partner: Columbia University, USA

Description 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.

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. Finally, 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.