Economic integration: Less data, more room for regional modelling?
AbstractEuropean integration changes the prospects of the regional economies within the Member States of the European Union in many ways. Cohesion policy is the EU’s instrument to influence and complement the efforts at the national level to ensure that regions are not left behind. This paper presents and applies a computable general equilibrium model developed for the purpose of assessing the impact of regional policy. The model encompasses the mechanisms of agglomeration and dispersion that emerge from the modern theories of economic geography and growth. It is particularly useful for handling investments in the infrastructure connecting the regions and spillovers of investments in the innovation capacity of the regions, both of which cannot be captured by models in which the spatial structure is not present. The paper discusses the strengths and limitations of the approach and the need to align the simulation results with those of more dynamic and aggregated models.
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Bibliographic InfoPaper provided by Economics and Econometrics Research Institute (EERI), Brussels in its series EERI Research Paper Series with number EERI RP 2013/09.
Date of creation: 09 Sep 2013
Date of revision:
Economic modelling; spatial dynamics; policy impact assessment; regional development; economic geography; spatial equilibrium; DSGE.;
Other versions of this item:
- D'Artis Kancs & Olga Ivanova & Andries Brandsma & Ben Gardiner, 2011. "Economic integration: less data, more room for regional modelling?," ERSA conference papers ersa10p500, European Regional Science Association.
- C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
- C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
- D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
- R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
- R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General
- R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General
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