Agent-Based Modelling and Policy Analysis Using the Eurace@Unibi Model

After a brief general discussion of the agent-based approach for macroeconomic modelling I introduce the Eurace@Unibi model as an example of an agent-based macroeconomic model suitable for policy analysis. The ability of the model to reproduce empirical stylised facts on different levels of aggregation is reviewed and its potential as a tool for policy analysis is illustrated considering the implications of different types of cohesion policy measures and the effect of decentralisation of wage setting on growth and inequality.