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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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Paper provided by Institute for Prospective and Technological Studies, Joint Research Centre in its series JRC-IPTS Working Papers with number JRC81133.

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Length: 24 pages
Date of creation: May 2013
Date of revision:
Handle: RePEc:ipt:iptwpa:jrc81133
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  1. Alan Manning, 2008. "The Plant Size-Place Effect: Agglomeration and Monopsony in Labour Markets," Working Papers 1109, Princeton University, Department of Economics, Industrial Relations Section..
  2. Dixit, Avinash K & Stiglitz, Joseph E, 1975. "Monopolistic Competition and Optimum Product Diversity," The Warwick Economics Research Paper Series (TWERPS) 64, University of Warwick, Department of Economics.
  3. Paul Krugman, 1990. "Increasing Returns and Economic Geography," NBER Working Papers 3275, National Bureau of Economic Research, Inc.
  4. Marshall, Alfred, 1890. "The Principles of Economics," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number marshall1890.
  5. 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.
  6. Andries Brandsma & d’Artis Kancs & Damiaan Persyn, 2013. "Modelling Migration and Regional Labour Markets: An Application of the New Economic Geography Model RHOMOLO," JRC-IPTS Working Papers JRC80825, Institute for Prospective and Technological Studies, Joint Research Centre.
  7. Paul M Romer, 1999. "Endogenous Technological Change," Levine's Working Paper Archive 2135, David K. Levine.
  8. Janos Varga & Jan in 't Veld, 2009. "A model-based analysis of the impact of Cohesion Policy expenditure 2000-06: simulations with the QUEST III endogenous R&D model," European Economy - Economic Papers 387, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
  9. James E. Anderson & Eric van Wincoop, 2001. "Gravity with Gravitas: A Solution to the Border Puzzle," NBER Working Papers 8079, National Bureau of Economic Research, Inc.
  10. Venables, Anthony J, 1993. "Equilibrium Locations of Vertically Linked Industries," CEPR Discussion Papers 802, C.E.P.R. Discussion Papers.
  11. Edward J. Balistreri & Russell H. Hillberry & Thomas F. Rutherford, 2008. "Structural Estimation and Solution of International Trade Models with Heterogeneous Firms," Department of Economics - Working Papers Series 1056, The University of Melbourne.
  12. Tibor Scitovsky, 1954. "Two Concepts of External Economies," Journal of Political Economy, University of Chicago Press, vol. 62, pages 143.
  13. Martin, Philippe & Rogers, Carol Ann, 1994. "Industrial Location and Public Infrastructure," CEPR Discussion Papers 909, C.E.P.R. Discussion Papers.
  14. 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.
  15. 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.
  16. 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.
  17. Francesco Di Comite & d’Artis Kancs, 2014. "Modelling of Agglomeration and Dispersion in RHOMOLO," JRC-IPTS Working Papers JRC81349, Institute for Prospective and Technological Studies, Joint Research Centre.
  18. Buti,Marco & Deroose,Servaas & Gaspar,Vitor & Martins,João Nogueira (ed.), 2010. "The Euro," Cambridge Books, Cambridge University Press, number 9789279098420.
  19. Jones, Charles I, 1995. "R&D-Based Models of Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 103(4), pages 759-84, August.
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