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RHOMOLO: A Dynamic General Equilibrium Modelling Approach to the Evaluation of the European Union's R&D Policies

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  • Andries Brandsma
  • D'Artis Kancs

Abstract

B randsma A. and K ancs d' A. RHOMOLO: a dynamic general equilibrium modelling approach to the evaluation of the European Union's R&D policies, Regional Studies . European integration changes the prospects of regional economies within the member states of the European Union in many ways. Cohesion Policy is the European Union's instrument to influence and complement the efforts made at the national level to ensure that the gains of economic integration reach everyone, and there are no regions left behind. This paper presents and applies a spatial general equilibrium model RHOMOLO to assess the impact of regional policy in the European Union. The presented simulation results highlight strengths of the approach taken in RHOMOLO in handling investments in research and development (R&D), infrastructure 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.

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  • Andries Brandsma & D'Artis Kancs, 2015. "RHOMOLO: A Dynamic General Equilibrium Modelling Approach to the Evaluation of the European Union's R&D Policies," Regional Studies, Taylor & Francis Journals, vol. 49(8), pages 1340-1359, August.
  • Handle: RePEc:taf:regstd:v:49:y:2015:i:8:p:1340-1359
    DOI: 10.1080/00343404.2015.1034665
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    1. Andries Brandsma & d'Artis Kancs & Philippe Monfort & Alexandra Rillaers, 2015. "RHOMOLO: A dynamic spatial general equilibrium model for assessing the impact of cohesion policy," Papers in Regional Science, Wiley Blackwell, vol. 94, pages 197-221, November.
    2. Olga Ivanova & d'Artis Kancs & Mark Thissen, 2019. "EU Economic Modelling System," Papers 1912.07115, arXiv.org.
    3. Francesco Di Comite & Olga Diukanova & Giovanni Mandras & Javier Gómez Prieto, 2018. "The RHOMOLO economic impact assessment of the R&I and Low-Carbon ERDF Investment programme in Apulia, Italy," JRC Working Papers on Territorial Modelling and Analysis 2018-04, Joint Research Centre (Seville site).
    4. Zawalińska, Katarzyna & Tran, Nhi & Płoszaj, Adam, 2018. "R&D in a post centrally-planned economy: The macroeconomic effects in Poland," Journal of Policy Modeling, Elsevier, vol. 40(1), pages 37-59.
    5. Persyn, Damiaan & Brandsma, Andries & Kancs, d’Artis, 2014. "Modelling Migration and Regional Labour Markets: an Application of the New Economic Geography Model RHOMOLO," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 29, pages 372-407.
    6. d’Artis Kancs & Boriss Siliverstovs, 2020. "Employment effect of innovation," Empirical Economics, Springer, vol. 59(3), pages 1373-1391, September.
    7. Javier Barberoa & Olga Diukanovaa & Carlo Gianellea & Simone Salottia & Artur Santoalha, 2020. "Economic modelling to evaluate Smart Specialisation: an analysis on research and innovation targets in Southern Europe," Working Papers on Innovation Studies 20200525, Centre for Technology, Innovation and Culture, University of Oslo.
    8. d’Artis Kancs, 2006. "The economic geography of labour migration: Competition, competitiveness and development," EERI Research Paper Series EERI_RP_2006_01, Economics and Econometrics Research Institute (EERI), Brussels.
    9. Ioannis Charalampidis & Panagiotis Karkatsoulis & Pantelis Capros, 2019. "A Regional Economy-Energy-Transport Model of the EU for Assessing Decarbonization in Transport," Energies, MDPI, Open Access Journal, vol. 12(16), pages 1-27, August.
    10. Zachary A. Wendling & David C. Warren & Barry M. Rubin & Sanya Carley & Kenneth R. Richards, 2020. "A Scalable Energy–Economy Model for State-Level Policy Analysis Applied to a Demand-Side Management Program," Economic Development Quarterly, , vol. 34(4), pages 372-386, November.
    11. Attila Varga & Norbert Szabó & Tamás Sebestyén, 2020. "Economic impact modelling of smart specialization policy: Which industries should prioritization target?," Papers in Regional Science, Wiley Blackwell, vol. 99(5), pages 1367-1388, October.
    12. Olga Ivanova & d'Artis Kancs & Dirk Stelder, 2009. "Modelling Inter-Regional Trade Flows: Data and Methodological Issues in Rhomolo," EERI Research Paper Series EERI RP 2009/31, Economics and Econometrics Research Institute (EERI), Brussels.
    13. James Anderson, 2001. "Migration, FDI, and the Margins of Trade," EERI Research Paper Series EERI_RP_2001_05, Economics and Econometrics Research Institute (EERI), Brussels.
    14. Francesco Di Comite & D'Artis Kancs & Wouter Torfs, 2015. "Macroeconomic Modelling of R&D and Innovation Policies," JRC Working Papers JRC89558, Joint Research Centre (Seville site).
    15. Katarzyna Zawalińska & Nhi Tran & Adam Płoszaj, 2016. "Planning R&D in a Post Centrally-Planned Economy: Assessing the Macroeconomic Effects in Poland," Centre of Policy Studies/IMPACT Centre Working Papers g-268, Victoria University, Centre of Policy Studies/IMPACT Centre.
    16. Francesco Di Comite & Olga Diukanova & D'Artis Kancs, 2016. "RHOMOLO Model Manual: A Dynamic Spatial General Equilibrium Model for EU Regions and Sectors," JRC Working Papers JRC96776, Joint Research Centre (Seville site).
    17. Pavel Ciaian & d'Artis Kancs, 2015. "Assessing the Social and Macroeconomic Impacts of Labour Market Integration: A Holistic Approach," JRC Working Papers JRC99645, Joint Research Centre (Seville site).
    18. Zawalińska, Katarzyna & Ciechomska, Anna & Jendrzejewski, Błażej, 2016. "Challenges for Modelling CAP 2014–2020 within CGE Model Framework," Village and Agriculture (Wieś i Rolnictwo), Polish Academy of Sciences (IRWiR PAN), Institute of Rural and Agricultural Development, vol. 4(173).
    19. Jean Mercenier & Maria Teresa Alvarez Martinez & Andries Brandsma & Francesco Di Comite & Olga Diukanova & d'Artis Kancs & Patrizio Lecca & Montserrat Lopez-Cobo & Philippe Monfort & Damiaan Persyn & , 2016. "RHOMOLO-v2 Model Description: A spatial computable general equilibrium model for EU regions and sectors," JRC Working Papers JRC100011, Joint Research Centre (Seville site).
    20. Czapiewski, Konrad & Janc, Krzysztof & Owsiński, Jan & Śleszyński, Przemysław, 2016. "A modelling project in Poland: the social and intellectual capital aspects," Studies in Agricultural Economics, Research Institute for Agricultural Economics, vol. 118(1), pages 1-11, April.
    21. Philip McCann & Attila Varga, 2015. "The Reforms to the Regional and Urban Policy of the European Union: EU Cohesion Policy," Regional Studies, Taylor & Francis Journals, vol. 49(8), pages 1255-1257, August.
    22. Brandsma, Andries & Di Comite, Francesco & Diukanova, Olga & Kancs, d’Artis & López-Rodríguez, Jesús & Persyn, Damiaan & Potters, Lesley, 2014. "Assessing policy options for the EU Cohesion Policy 2014-2020," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 29, pages 17-46.
    23. Attila Varga & Mete Basar Baypinar, 2016. "Economic impact assessment of alternative European Neighborhood Policy (ENP) options with the application of the GMR-Turkey model," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 56(1), pages 153-176, January.
    24. Ramona Pîrvu & Roxana Bădîrcea & Alina Manta & Mihaela Lupăncescu, 2018. "The Effects of the Cohesion Policy on the Sustainable Development of the Development Regions in Romania," Sustainability, MDPI, Open Access Journal, vol. 10(7), pages 1-21, July.

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    JEL classification:

    • 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
    • F1 - International Economics - - Trade
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O40 - Economic Development, Innovation, 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
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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