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Spatial effects of transeuropean networks: Preliminary results from a spatial computable general equilibrium analysis

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  • Bröcker, Johannes
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    Abstract

    This paper quantifies regional welfare effects of new transport links, which are going to be established in the framework of Trans-European Networks (TEN). It is confined to the regional welfare effects resulting from the use of the new links for trading goods and services. Effects from the construction phase, from financing and maintenance are not considered. Use of the links for other than trade purposes, such as commuting, tourism, leisure trips et cetera are not considered either. Welfare implications of new transport links are quantified by simulating effects of transport distance reductions in a spatial computable general equilibrium model. We model a static equilibrium for two sectors (local goods and tradables) and many regions. Firms in the tradables sector supply a large number of symmetrical product varieties under monopolistic competition. Trade between regions is costly, with costs depending on transport distances through a given transport network as well as on national trade impediments. The paper explains the formal structure of the model, the calibration procedure, and the data basis for implementing the model to a system of more than 800 regions covering the entire European space. Numerical results for several scenarios regarding regarding the establishment of TEN links are presented. --

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    Bibliographic Info

    Paper provided by Dresden University of Technology, Faculty of Transportation and Traffic Sciences "Friedrich List", Institute for Transport and Economics in its series Discussion Papers with number 4/98.

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    Date of creation: 1998
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    Handle: RePEc:zbw:tudiwv:498

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    Related research

    Keywords: transport infrastructure; computable equilibrium; spatial equilibrium; monopolistic competition;

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    1. Dixit, Avinash K & Stiglitz, Joseph E, 1977. "Monopolistic Competition and Optimum Product Diversity," American Economic Review, American Economic Association, vol. 67(3), pages 297-308, June.
    2. Fujita, Masahisa & Krugman, Paul & Mori, Tomoya, 1999. "On the evolution of hierarchical urban systems1," European Economic Review, Elsevier, vol. 43(2), pages 209-251, February.
    3. Brocker, Johannes & Rohweder, Herold C, 1990. "Barriers to International Trade: Methods of Measurement and Empirical Evidence," The Annals of Regional Science, Springer, vol. 24(4), pages 289-305.
    4. Kiminiori Matsuyama, 1994. "Complementaries and Cumulative Processes In Models of Monopolistic Competition," Discussion Papers 1106, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
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    Cited by:
    1. Röhl, Klaus-Heiner, 2000. "Der Aufbau der ostdeutschen Infrastruktur und sein Beitrag zur wirtschaftlichen Entwicklung in Sachsen," Discussion Papers 2/2000, Dresden University of Technology, Faculty of Transportation and Traffic Sciences "Friedrich List", Institute for Transport and Economics.
    2. Johannes Bröcker & Nils Schneekloth, 2005. "European Transport Policy and Cohesion - An Assessment by CGE Analysis," ERSA conference papers ersa05p624, European Regional Science Association.
    3. Bröcker, Johannes, 2002. "Passenger flows in CGE models for transport project evaluation," ERSA conference papers ersa02p163, European Regional Science Association.
    4. Johannes Brocker & d’Artis Kancs, 2001. "Methodology for the Assessment of Spatial Economic Impacts of Transport Projects and Policies," EERI Research Paper Series EERI_RP_2001_03, Economics and Econometrics Research Institute (EERI), Brussels.

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