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SCGE modelling in cost-benefit analysis: The Dutch experience

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  • Koopmans, Carl
  • Oosterhaven, Jan

Abstract

Spatial computable general equilibrium (SCGE) models offer opportunities for computing wider economic effects in cost-benefit analysis (CBA) in a theoretically satisfactory way. This is important for the correct estimation of additional economic benefits and international relocation impacts. In the Netherlands, this potential has only been reached partly. Many different types of models are actually used, none of which yet covers all relevant markets. In CBAs carried out in recent years, ad hoc methods were used more often than models, let alone SCGE models. Moreover, the usual presentation of the model outcomes appears as a [`]black box' to policy makers. There is much work to be done, in extending SCGE models to strengthen their empirical basis, and in improving the presentation of the outcomes.

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Bibliographic Info

Article provided by Elsevier in its journal Research in Transportation Economics.

Volume (Year): 31 (2011)
Issue (Month): 1 ()
Pages: 29-36

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Handle: RePEc:eee:retrec:v:31:y:2011:i:1:p:29-36

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Keywords: Transport infrastructure Spatial equilibrium models Market imperfections Cost-benefit analysis The Netherlands;

References

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  1. Knaap, Thijs & Oosterhaven, Jan, 2011. "Measuring the welfare effects of infrastructure: A simple spatial equilibrium evaluation of Dutch railway proposals," Research in Transportation Economics, Elsevier, vol. 31(1), pages 19-28.
  2. Masahisa Fujita & Tomoya Mori, 2005. "Frontiers of the New Economic Geography," KIER Working Papers 604, Kyoto University, Institute of Economic Research.
  3. Masahisa Fujita & Paul Krugman, 2003. "The new economic geography: Past, present and the future," Economics of Governance, Springer, vol. 83(1), pages 139-164, October.
  4. J. Elhorst & Jan Oosterhaven, 2006. "Forecasting the impact of transport improvements on commuting and residential choice," Journal of Geographical Systems, Springer, vol. 8(1), pages 39-59, March.
  5. Bröcker, Johannes & Korzhenevych, Artem & Riekhof, Marie-Catherine, 2011. "Predicting freight flows in a globalising world," Research in Transportation Economics, Elsevier, vol. 31(1), pages 37-44.
  6. Christopher A. Pissarides, 2000. "Equilibrium Unemployment Theory, 2nd Edition," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262161877, December.
  7. Hayashi, Y. & Morisugi, H., 2000. "International comparison of background concept and methodology of transportation project appraisal," Transport Policy, Elsevier, vol. 7(1), pages 73-88, January.
  8. Jan Rouwendal, 2002. "Indirect Welfare Effects of Price Changes and Cost-Benefit Analysis," Tinbergen Institute Discussion Papers 02-011/3, Tinbergen Institute.
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Cited by:
  1. Simmonds, David & Feldman, Olga, 2011. "Alternative approaches to spatial modelling," Research in Transportation Economics, Elsevier, vol. 31(1), pages 2-11.
  2. Knaap, Thijs & Oosterhaven, Jan, 2011. "Measuring the welfare effects of infrastructure: A simple spatial equilibrium evaluation of Dutch railway proposals," Research in Transportation Economics, Elsevier, vol. 31(1), pages 19-28.

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