Agent-Based Macroeconomic Modeling and Policy Analysis: The Eurace@Unibi Model

Agent-based simulation models are a relatively new addition to the tool-box of macroeconomists. In this chapter we introduce the Eurace@Unibi model and the research that has been done within this framework. We show how an agent-based model can be used to identify economic mechanisms and how it can be applied to spatial policy analysis. Our assessment is that agent-based models in economics have passed the proof-of-concept phase and it is now time to move beyond that stage. It has been shown that new kinds of insights can be obtained that complement established modeling approaches. We conclude by pointing towards some potentially fruitful areas of agent-based macroeconomic research. We are grateful to Shu-Heng Chen and two anonymous referees for helpful comments on a previous version of the manuscript. Department of Business Administration and Economics, Bielefeld University, Germany Department of Law and Economics, Technical University of Darmstadt, Germany