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CGE Analysis of Regional Policy in Northern Kyushu Area

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  • Hiroshi Sakamoto

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    Abstract

    This study develops a policy model under the hierarchical administration system of the regional economy in Japan. In case of Japan, a hierarchy of national, prefectural, and municipal (city) administration exists, and a different regional policy in these each hierarchies can be set up. Generally, the policy and its evaluation might be different whether should give priority to national interests or to each region’s interests. To show such a situation, quantitatively analysis by using the computable general equilibrium model (CGE model) is examined. Concretely, Kitakyushu City and Fukuoka City are taken up as an administrative region at the city level. Together with these two cities and surrounding areas, it becomes Fukuoka Prefecture. On the other hand, the case of including Yamaguchi Prefecture, the adjacent prefecture, in these regions exists. In this case, it can be called Northern Kyushu Area by combining Fukuoka Prefecture and Yamaguchi Prefecture, and such a large area also becomes important in the regional policy as higher hierarchy. Five regions including the rest of Japan are focused on this study. Moreover, due to availableness of the input-output tables of these regions, respectively, the data base to develop the CGE model is estimated after tabulating the interregional input-output table.

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    File URL: http://www-sre.wu.ac.at/ersa/ersaconfs/ersa10/ERSA2010finalpaper383.pdf
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    Bibliographic Info

    Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa10p383.

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    Date of creation: Sep 2011
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    Handle: RePEc:wiw:wiwrsa:ersa10p383

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    1. Ueda, Takayuki & Koike, Atsushi & Yamaguchi, Katsuhiro & Tsuchiya, Kazuyuki, 2005. "Spatial Benefit Incidence Analysis of Airport Capacity Expansion: Application of SCGE Model to the Haneda Project," Research in Transportation Economics, Elsevier, vol. 13(1), pages 165-196, January.
    2. Bröcker, Johannes & Korzhenevych, Artem & Schürmann, Carsten, 2010. "Assessing spatial equity and efficiency impacts of transport infrastructure projects," Transportation Research Part B: Methodological, Elsevier, vol. 44(7), pages 795-811, August.
    3. Bessho, Shun-ichiro & Hayashi, Masayoshi, 2005. "Economic studies of taxation in Japan: The case of personal income taxes," Journal of Asian Economics, Elsevier, vol. 16(6), pages 956-972, December.
    4. Bohringer, Christoph & Welsch, Heinz, 2004. "Contraction and Convergence of carbon emissions: an intertemporal multi-region CGE analysis," Journal of Policy Modeling, Elsevier, vol. 26(1), pages 21-39, January.
    5. Latorre, María C. & Bajo-Rubio, Oscar & Gómez-Plana, Antonio G., 2009. "The effects of multinationals on host economies: A CGE approach," Economic Modelling, Elsevier, vol. 26(5), pages 851-864, September.
    6. Takahiro Akita, 2003. "Decomposing regional income inequality in China and Indonesia using two-stage nested Theil decomposition method," The Annals of Regional Science, Springer, vol. 37(1), pages 55-77, 02.
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