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Spatial networks in multi-region computable general equilibrium models

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  • Lofgren, Hans
  • Robinson, Sherman

Abstract

The spatial dimension of economic policy is often important. However, as opposed to partial-equilibrium multi-region programming models, existing multi-region Computable General Equilibrium (CGE) models have rarely explicitly treated geographical space. This paper develops a spatial-network, mixed-complementarity CGE model that combines the strengths of CGE and partial-equilibrium programming models. We implement the model with a prototype data set for a stylized, poor, developing country with rural regions linked to an urban region that provides the gateway to international markets. We demonstrate that the model provides a good framework for analyzing the impact of higher world prices and reduced domestic transportation costs.

Suggested Citation

  • Lofgren, Hans & Robinson, Sherman, 1999. "Spatial networks in multi-region computable general equilibrium models," TMD Discussion Papers 97555, CGIAR, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:ags:iffp23:97555
    DOI: 10.22004/ag.econ.97555
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    References listed on IDEAS

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    1. Peter B. Dixon, 1991. "The Mathematical Programming Approach to Applied General Equilibrium Modelling: Notes and Problems," Centre of Policy Studies/IMPACT Centre Working Papers i-50, Victoria University, Centre of Policy Studies/IMPACT Centre.
    2. Rutherford, Thomas F., 1995. "Extension of GAMS for complementarity problems arising in applied economic analysis," Journal of Economic Dynamics and Control, Elsevier, vol. 19(8), pages 1299-1324, November.
    3. Victor Ginsburgh & Jean Waelbroeck, 1981. "Activity Analysis and General Equilibrium Modelling," ULB Institutional Repository 2013/1649, ULB -- Universite Libre de Bruxelles.
    4. 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.
    5. Dixon, Peter, 1991. "The Mathematical Programming Approach to Applied General Equilibrium Modelling Notes and Problems," Impact Project Archive 295040, Impact Research Centre, University of Melbourne.
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    Cited by:

    1. Harris, Rebecca Lee, 1999. "The Distributional Impact of Macroeconomic Shocks in Mexico: Threshold Effects in a Multi-Region CGE Model," TMD Discussion Papers 97535, CGIAR, International Food Policy Research Institute (IFPRI).
    2. Jha, Shikha & Srinivasan, P.V., 2004. "Achieving Food Security In A Cost Effective Way: Implications Of Domestic Deregulation And Reform Under Liberalized Trade," MTID Discussion Papers 16134, CGIAR, International Food Policy Research Institute (IFPRI).

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