We describe the GALFORM semi-analytic model for calculating the formation a
nd evolution of galaxies in hierarchical clustering cosmologies. It improve
s upon, and extends, the earlier scheme developed by Cole et al. The model
employs a new Monte Carlo algorithm to follow the merging evolution of dark
matter haloes with arbitrary mass resolution. It incorporates realistic de
scriptions of the density profiles of dark matter haloes and the gas they c
ontain; it follows the chemical evolution of gas and stars, and the associa
ted production of dust; and it includes a detailed calculation of the sizes
of discs and spheroids. Wherever possible, our prescriptions for modelling
individual physical processes are based on results of numerical simulation
s. They require a number of adjustable parameters, which we fix by referenc
e to a small subset of local galaxy data. This results in a fully specified
model of galaxy formation which can be tested against other data. We apply
our methods to the Lambda CDM cosmology (Omega (0) = 0.3, Lambda (0) = 0.7
), and find good agreement with a wide range of properties of the local gal
axy population: the B- and K-band luminosity functions, the distribution of
colours for the population as a whole, the ratio of ellipticals to spirals
, the distribution of disc sizes, and the current cold gas content of discs
. Inspire of the overall success of the model, some interesting discrepanci
es remain: the colour-magnitude relation for ellipticals in clusters is sig
nificantly flatter than observed at bright magnitudes (although the scatter
is about right), and the model predicts galaxy circular velocities, at a g
iven luminosity, that are about 30 per cent larger than is observed. It is
unclear whether these discrepancies represent fundamental shortcomings of t
he model, or whether they result from the various approximations and uncert
ainties inherent in the technique. Our more detailed methods do not change
our earlier conclusion that just over half the stars in the Universe are ex
pected to have formed since z less than or similar to 1.5.