Using a CGE Model for analyzing the Macroeconomic impact of the Grand Paris Express project on the Ile-de-France Region

new Computable General Equilibrium (CGE) Model aiming at measuring the long term global impact of the so called Grand Paris Express project on the French region Ile-de-France. The impacts of this new transport infrastructure will be broader than urban transportation, and it is expected to have wider impacts on employment, real estate market and regional attractiveness of Paris. To evaluate the magnitude of these impacts, we develop a CGE model of the Region Ile-de-France with several innovative features. The paper will make a detailed presentation of the general features of the model and of a first version which is mainly focusing on the representation of the public transport sector. In a first section, we present the Social Accounting Matrix (SAM) we have been developing for the model, which some specific features linked to the representation of the transportation system and the inclusion of the land markets. Then, we will present the base structure of the model: the production and the link between supply and demand of each product, flows of trade between the Ile-de-France region and the rest of the word, the incomes and expenditure of the various economic agents and the price determination, the market for public transport. In the next section we perform simulation analysis where we introduce a shock in transportation sector and evaluate its impact on transportation trend and how it spreads in the other sectors of the economy. The objective of this analysis is to identify public policies that can improve the implementation of the Grand Paris Express. These policies will be related to transportation reforms itself, but also to real estate market and possibility to labor market. The last section concludes with the main findings.