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Rhomolo: A Dynamic Spatial General Equilibrium Model for Assessing the Impact of Cohesion Policy

The paper presents the newly developed dynamic spatial general equilibrium model of European Commission - RHOMOLO, in which the interplay of agglomeration and dispersion forces can be analysed in a novel and theoretically consistent way. A particular attention is paid to flows of goods, factors and services within and between regions that are generated by the stimulus to the regions. This will allow an assessment of the feedback to the Member States and regions and the possibility that in the longer run they will all benefit from the additional growth that is generated. In doing so, it sheds new light on how the success of cohesion policy can be measured.

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File URL: http://publications.jrc.ec.europa.eu/repository/handle/JRC81133
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Paper provided by Joint Research Centre (Seville site) in its series JRC Working Papers with number JRC81133.

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Length: 24 pages
Date of creation: May 2013
Handle: RePEc:ipt:iptwpa:jrc81133
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  1. Andries Brandsma & d’Artis Kancs & Damiaan Persyn, 2013. "Modelling Migration and Regional Labour Markets: An Application of the New Economic Geography Model RHOMOLO," JRC Working Papers JRC80825, Joint Research Centre (Seville site).
  2. Andries Brandsma & D'Artis Kancs, 2015. "RHOMOLO: A Dynamic General Equilibrium Modelling Approach to the Evaluation of the EU’s R&D Policies," JRC Working Papers JRC95421, Joint Research Centre (Seville site).
  3. Starrett, David, 1978. "Market allocations of location choice in a model with free mobility," Journal of Economic Theory, Elsevier, vol. 17(1), pages 21-37, February.
  4. Russell H. Hillberry & Edward J. Balistreri & Thomas F. Rutherford, 2007. "Structural Estimation and Solution of International Trade Models with Heterogeneous Firms," DEGIT Conference Papers c012_038, DEGIT, Dynamics, Economic Growth, and International Trade.
  5. John Bradley & Gerhard Untiedt & Edgar Morgenroth, 2003. "Macro-regional evaluation of the structural funds using the Hermin modelling framework," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 2003(3).
  6. Anthony J. Venables, 1993. "Equilibrium Locations of Vertically Linked Industries," CEP Discussion Papers dp0137, Centre for Economic Performance, LSE.
  7. Andres Rodriguez-Pose & Riccardo regstdcenzi, 2008. "Research and Development, Spillovers, Innovation Systems, and the Genesis of Regional Growth in Europe," Regional Studies, Taylor & Francis Journals, vol. 42(1), pages 51-67.
  8. Paul Romer, 1989. "Endogenous Technological Change," NBER Working Papers 3210, National Bureau of Economic Research, Inc.
  9. Pissarides, Christopher A & Wadsworth, Jonathan, 1989. "Unemployment and the Inter-regional Mobility of Labour," Economic Journal, Royal Economic Society, vol. 99(397), pages 739-55, September.
  10. Olga Ivanova & D'Artis Kancs & Dirk Stelder, 2011. "Modelling inter-regional trade flows: data and methodological issues in Rhomolo," ERSA conference papers ersa10p500, European Regional Science Association.
  11. Marshall, Alfred, 1890. "The Principles of Economics," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number marshall1890.
  12. Jones, Charles I, 1995. "R&D-Based Models of Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 103(4), pages 759-784, August.
  13. Buti,Marco & Deroose,Servaas & Gaspar,Vitor & Martins,João Nogueira (ed.), 2010. "The Euro," Cambridge Books, Cambridge University Press, number 9789279098420, October.
  14. James E. Anderson & Eric van Wincoop, 2003. "Gravity with Gravitas: A Solution to the Border Puzzle," American Economic Review, American Economic Association, vol. 93(1), pages 170-192, March.
  15. Varga, Janos & in 't Veld, Jan, 2011. "A model-based analysis of the impact of Cohesion Policy expenditure 2000-06: Simulations with the QUEST III endogenous R&D model," Economic Modelling, Elsevier, vol. 28(1-2), pages 647-663, January.
  16. Alan Manning, 2007. "The Plant Size-Place Effect: Agglomeration and Monopsony in Labour Markets," CEP Discussion Papers dp0773, Centre for Economic Performance, LSE.
  17. Martin, Philippe & Rogers, Carol Ann, 1994. "Industrial Location and Public Infrastructure," CEPR Discussion Papers 909, C.E.P.R. Discussion Papers.
  18. Blanchard, Olivier Jean & Kiyotaki, Nobuhiro, 1987. "Monopolistic Competition and the Effects of Aggregate Demand," American Economic Review, American Economic Association, vol. 77(4), pages 647-66, September.
  19. Paul Krugman, 1990. "Increasing Returns and Economic Geography," NBER Working Papers 3275, National Bureau of Economic Research, Inc.
  20. Dixit, Avinash K & Stiglitz, Joseph E, 1977. "Monopolistic Competition and Optimum Product Diversity," American Economic Review, American Economic Association, vol. 67(3), pages 297-308, June.
  21. Tibor Scitovsky, 1954. "Two Concepts of External Economies," Journal of Political Economy, University of Chicago Press, vol. 62, pages 143-143.
  22. Francesco Di Comite & d’Artis Kancs, 2014. "Modelling of Agglomeration and Dispersion in RHOMOLO," JRC Working Papers JRC81349, Joint Research Centre (Seville site).
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