This document provides a description of the modeling assumptions and economic features

of the Eurace@Unibi model. Furthermore, the document shows typical patterns of

the output generated by this model and compares it to empirically observable stylized facts.

The Eurace@Unibi model provides a representation of a closed macroeconomic model with

spatial structure. The main objective is to provide a micro-founded macroeconomic model

that can be used as a unified framework for policy analysis in different economic policy areas

and for the examination of generic macroeconomic research questions. In spite of this general

agenda the model has been constructed with certain specific research questions in mind and

therefore certain parts of the model, e.g. the mechanisms driving technological change, have

been worked out in more detail than others.

The purpose of this document is to give an overview over the model itself and its features

rather than discussing how insights into particular economic issues can be obtained using the

Eurace@Unibi model. The model has been designed as a framework for economic analysis in

various domains of economics. A number of economic issues have been examined using (prior

versions of) the model (see Dawid et al. (2008), Dawid et al. (2009), Dawid et al. (2011a),

Dawid and Harting (2011), van der Hoog and Deissenberg (2011), Cincotti et al. (2010))

and recent extensions of the model have substantially extended its applicability in various

economic policy domains, however results of such policy analyses will be reported elsewhere.

Whereas the overall modeling approach, the different modeling choices and the economic

rationale behind these choices is discussed in some detail in this document, no detailed

description of the implementation is given. Such a detailed documentation is provided in the

accompanying document Dawid et al. (2011b).