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Spatial networks in multi-region computable general equilibrium models:

Author

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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 35, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:tmddps:35
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    File URL: http://www.ifpri.org/sites/default/files/publications/tmdp35.pdf
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    Cited by:

    1. Ahmed, Vaqar, 2006. "Regional economic modelling: evaluating existing methods and models for constructing an Irish prototype," MPRA Paper 7650, University Library of Munich, Germany.
    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. Rodriguez, U-Primo E., 2007. "State-of-the-Art in Regional Computable General Equilibrium Modelling with a Case Study of the Philippines," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 20(1).
    4. Arguello, Ricardo, 2009. "The Regional Impact of Discriminatory Trade Liberalization on Colombian Agriculture," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 39(2), pages 1-19.
    5. Ghaith, Ziad & Kulshreshtha, Suren & Natcher, David & Cameron, Bobby Thomas, 2021. "Regional Computable General Equilibrium models: A review," Journal of Policy Modeling, Elsevier, vol. 43(3), pages 710-724.
    6. Phillip M. Bishop & Charles F. Nicholson & James E. Pratt & Andrew M. Novakovic, 2001. "Tariff-Rate Quotas : Difficult to model or plain simple?," Trade Working Papers 22011, East Asian Bureau of Economic Research.

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