The European Union-funded EURACE project has developed simulation software capable of predicting interactions between large populations of different economic actors. The software uses the Flexible Large-scale Agent Modeling Environment simulation technology, which was developed for computer-generated images in movies. Each simulated agent is given individual and realistic behaviors and interactions to demonstrate how markets will evolve, which the researchers say makes the large-scale simulations better at testing new policies and potential changes in society. “The results of this research project will complement traditional economic statistics and assumptions about how economic actors react by enabling better testing of a policy’s effects on people while still on the drawing board,” says the EU Commissioner for Information Society and Media Viviane Reding. The simulations use computer-based experiments to focus on the relationships between large populations of different economic actors throughout numerous interconnected markets. This is the first time that this type of simulation technology has been applied on such a large scale using high-powered computing. By connecting hundreds of thousands of small simulated actions and reactions throughout the economy, the software can provide policy-makers with more accurate predictions of how people and the economy will react to policy changes.
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