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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 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. Balistreri, Edward J. & Hillberry, Russell H. & Rutherford, Thomas F., 2011. "Structural estimation and solution of international trade models with heterogeneous firms," Journal of International Economics, Elsevier, vol. 83(2), pages 95-108, March.
  2. Paul Romer, 1989. "Endogenous Technological Change," NBER Working Papers 3210, National Bureau of Economic Research, Inc.
  3. Martin, Philippe & Rogers, Carol Ann, 1994. "Industrial Location and Public Infrastructure," CEPR Discussion Papers 909, C.E.P.R. Discussion Papers.
  4. Venables, Anthony J, 1996. "Equilibrium Locations of Vertically Linked Industries," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 37(2), pages 341-59, May.
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  6. Persyn, Damiaan & Brandsma, Andries & Kancs, d’Artis, 2014. "Modelling Migration and Regional Labour Markets: an Application of the New Economic Geography Model RHOMOLO," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 29, pages 372-407.
  7. 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.
  8. Olga Ivanova & d'Artis Kancs & Dirk Stelder, 2009. "Modelling Inter-Regional Trade Flows: Data and Methodological Issues in Rhomolo," EERI Research Paper Series EERI RP 2009/31, Economics and Econometrics Research Institute (EERI), Brussels.
  9. Paul Krugman, 1990. "Increasing Returns and Economic Geography," NBER Working Papers 3275, National Bureau of Economic Research, Inc.
  10. 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.
  11. Andrés Rodríguez-Pose & Riccardo Crescenzi, 2008. "Research and development, spillovers, innovation systems, and the genesis of regional growth in Europe," LSE Research Online Documents on Economics 23326, London School of Economics and Political Science, LSE Library.
  12. 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.
  13. D'Artis Kancs & Enrique Lopez-Bazo & Fabio Manca & Damiaan Persyn, 2012. "Modelling Migration and Regional Labour Markets: An Application of New Economic Geography Model Rhomolo," ERSA conference papers ersa12p808, European Regional Science Association.
  14. Alan Manning, 2007. "The plant size-place effect: agglomeration and monopsony in labour markets," LSE Research Online Documents on Economics 19765, London School of Economics and Political Science, LSE Library.
  15. 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.
  16. 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), pages 647-663.
  17. Marshall, Alfred, 1890. "The Principles of Economics," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number marshall1890.
  18. 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.
  19. Tibor Scitovsky, 1954. "Two Concepts of External Economies," Journal of Political Economy, University of Chicago Press, vol. 62, pages 143.
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