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A Transportation-Oriented Interregional Computable General Equilibrium Model of the United States

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  • Buckley, Patrick H

Abstract

Interregional computable general equilibrium (ICGE) models are useful new tools for investigating questions of spatial equity and efficiency, especially if they consider the explicit costs of movement across space. In this paper, we outline a three-region, five-sector operational ICGE model of the United States which has been calibrated from a 51 region, 124 sector public data base. This model explicitly includes transportation and wholesaling services and the costs of moving products based on origin-destination pairs. Through the use of a counter-factual scenario, the ICGE's explicit specification is compared with a well known implicit method--to observe how the predicted regional production pattern is affected. The proposed.explicit method is seen to provide a more focused description of the spatial economic impacts that result from changes in the production of transportation services.

Suggested Citation

  • Buckley, Patrick H, 1992. "A Transportation-Oriented Interregional Computable General Equilibrium Model of the United States," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 26(4), pages 331-348, November.
  • Handle: RePEc:spr:anresc:v:26:y:1992:i:4:p:331-48
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    1. Aschauer, David Alan, 1989. "Is public expenditure productive?," Journal of Monetary Economics, Elsevier, pages 177-200.
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    Cited by:

    1. Johannes Bröcker & Jean Mercenier, 2011. "General Equilibrium Models for Transportation Economics," Chapters,in: A Handbook of Transport Economics, chapter 2 Edward Elgar Publishing.
    2. Huang, Tian & Kockelman, Kara M., 2008. "The Introduction of Dynamic Features in a Random-Utility-Based Multiregional Input-Output Model of Trade, Production, and Location Choice," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 47(1).
    3. Anu Tokila & Mika Haapanen, 2012. "Evaluation of Deadweight Spending in Regional Enterprise Financing," Regional Studies, Taylor & Francis Journals, vol. 46(2), pages 185-201, May.
    4. Giesecke, James A. & Madden, John R., 2013. "Regional Computable General Equilibrium Modeling," Handbook of Computable General Equilibrium Modeling, Elsevier.
    5. Lofgren, Hans & Robinson, Sheman, 2002. "Spatial-network, general-equilibrium model with a stylized application," Regional Science and Urban Economics, Elsevier, vol. 32(5), pages 651-671, September.
    6. Eduardo Haddad & Geoffrey J.D. Hewings, 1998. "Transportation costs, regional inequality and structural changes in the Brazilian economy: An interregional CGE approach," ERSA conference papers ersa98p426, European Regional Science Association.
    7. Plassmann, Florenz, 2005. "The advantage of avoiding the Armington assumption in multi-region models," Regional Science and Urban Economics, Elsevier, vol. 35(6), pages 777-794, November.
    8. Glen Weisbrod, 2008. "Models to predict the economic development impact of transportation projects: historical experience and new applications," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 42(3), pages 519-543, September.
    9. World Bank, 2008. "Brazil : Evaluating the Macroeconomic and Distributional Impacts of Lowering Transportation Costs," World Bank Other Operational Studies 8083, The World Bank.

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