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RHOMOLO: A Dynamic General Equilibrium Modelling Approach to the Evaluation of the EU’s R&D Policies

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Abstract

European integration changes the prospects of regional economies within the Member States of the European Union in many ways. Cohesion policy is the EU’s instrument to influence and complement the efforts at the national level to ensure that the gains of economic integration reach everyone, and there are no regions left behind. This paper presents and applies a spatial general equilibrium model RHOMOLO to assess the impact of regional policy in the EU. The presented simulation results highlight strengths of the approach taken in RHOMOLO in handling investments in R&D, infrastructure and spillovers of investments in the innovation capacity of the regions, both of which cannot be captured by models in which the spatial structure is not present.

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  • 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).
    • Handle: RePEc:ipt:iptwpa:jrc95421
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    1. 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.
    2. Francesco Di Comite & D'Artis Kancs, 2015. "Macro-Economic Models for R&D and Innovation Policies - A Comparison of QUEST, RHOMOLO, GEM-E3 and NEMESIS," JRC Working Papers JRC94323, Joint Research Centre (Seville site).
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    Cited by:

    1. Ioannis Charalampidis & Panagiotis Karkatsoulis & Pantelis Capros, 2019. "A Regional Economy-Energy-Transport Model of the EU for Assessing Decarbonization in Transport," Energies, MDPI, Open Access Journal, vol. 12(16), pages 1-1, August.
    2. Zachary A. Wendling & David C. Warren & Barry M. Rubin & Sanya Carley & Kenneth R. Richards, 2020. "A Scalable Energy–Economy Model for State-Level Policy Analysis Applied to a Demand-Side Management Program," Economic Development Quarterly, , vol. 34(4), pages 372-386, November.
    3. Francesco Di Comite & Olga Diukanova & D'Artis Kancs, 2016. "RHOMOLO Model Manual: A Dynamic Spatial General Equilibrium Model for EU Regions and Sectors," JRC Working Papers JRC96776, Joint Research Centre (Seville site).
    4. 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.
    5. Pavel Ciaian & d’Artis Kancs, 2015. "Assessing the Social and Macroeconomic Impacts of Labour Market Integration: A Holistic Approach," JRC Working Papers JRC99645, Joint Research Centre (Seville site).
    6. Attila Varga & Norbert Szabó & Tamás Sebestyén, 2020. "Economic impact modelling of smart specialization policy: Which industries should prioritization target?," Papers in Regional Science, Wiley Blackwell, vol. 99(5), pages 1367-1388, October.
    7. d’Artis Kancs & Boriss Siliverstovs, 2020. "Employment effect of innovation," Empirical Economics, Springer, vol. 59(3), pages 1373-1391, September.
    8. Czapiewski, Konrad & Janc, Krzysztof & Owsiński, Jan & Śleszyński, Przemysław, 2016. "A modelling project in Poland: the social and intellectual capital aspects," Studies in Agricultural Economics, Research Institute for Agricultural Economics, vol. 118(1), pages 1-11, April.
    9. Andries Brandsma & d'Artis Kancs & Philippe Monfort & Alexandra Rillaers, 2015. "RHOMOLO: A dynamic spatial general equilibrium model for assessing the impact of cohesion policy," Papers in Regional Science, Wiley Blackwell, vol. 94, pages 197-221, November.
    10. Philip McCann & Attila Varga, 2015. "The Reforms to the Regional and Urban Policy of the European Union: EU Cohesion Policy," Regional Studies, Taylor & Francis Journals, vol. 49(8), pages 1255-1257, August.
    11. Olga Ivanova & d'Artis Kancs & Mark Thissen, 2019. "EU Economic Modelling System," Papers 1912.07115, arXiv.org.
    12. 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.
    13. Francesco Di Comite & Olga Diukanova & Giovanni Mandras & Javier Gómez Prieto, 2018. "The RHOMOLO economic impact assessment of the R&I and Low-Carbon ERDF Investment programme in Apulia, Italy," JRC Working Papers on Territorial Modelling and Analysis 2018-04, Joint Research Centre (Seville site).
    14. James Anderson, 2001. "Migration, FDI, and the Margins of Trade," EERI Research Paper Series EERI_RP_2001_05, Economics and Econometrics Research Institute (EERI), Brussels.
    15. Brandsma, Andries & Di Comite, Francesco & Diukanova, Olga & Kancs, d’Artis & López-Rodríguez, Jesús & Persyn, Damiaan & Potters, Lesley, 2014. "Assessing policy options for the EU Cohesion Policy 2014-2020," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 29, pages 17-46.
    16. Francesco Di Comite & d'Artis Kancs & Patrizio Lecca, 2018. "Modeling agglomeration and dispersion in space: The role of labor migration, capital mobility and vertical linkages," Review of International Economics, Wiley Blackwell, vol. 26(3), pages 555-577, August.
    17. Francesco Di Comite & D'Artis Kancs & Wouter Torfs, 2015. "Macroeconomic Modelling of R&D and Innovation Policies," JRC Working Papers JRC89558, Joint Research Centre (Seville site).
    18. Zawalińska, Katarzyna & Tran, Nhi & Płoszaj, Adam, 2018. "R&D in a post centrally-planned economy: The macroeconomic effects in Poland," Journal of Policy Modeling, Elsevier, vol. 40(1), pages 37-59.
    19. Attila Varga & Mete Basar Baypinar, 2016. "Economic impact assessment of alternative European Neighborhood Policy (ENP) options with the application of the GMR-Turkey model," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 56(1), pages 153-176, January.
    20. Katarzyna Zawalińska & Nhi Tran & Adam Płoszaj, 2016. "Planning R&D in a Post Centrally-Planned Economy: Assessing the Macroeconomic Effects in Poland," Centre of Policy Studies/IMPACT Centre Working Papers g-268, Victoria University, Centre of Policy Studies/IMPACT Centre.
    21. Zawalińska, Katarzyna & Ciechomska, Anna & Jendrzejewski, Błażej, 2016. "Challenges for Modelling CAP 2014–2020 within CGE Model Framework," Village and Agriculture (Wieś i Rolnictwo), Polish Academy of Sciences (IRWiR PAN), Institute of Rural and Agricultural Development, vol. 4(173).
    22. Javier Barberoa & Olga Diukanovaa & Carlo Gianellea & Simone Salottia & Artur Santoalha, 2020. "Economic modelling to evaluate Smart Specialisation: an analysis on research and innovation targets in Southern Europe," Working Papers on Innovation Studies 20200525, Centre for Technology, Innovation and Culture, University of Oslo.
    23. Jean Mercenier & Maria Teresa Alvarez Martinez & Andries Brandsma & Francesco Di Comite & Olga Diukanova & d'Artis Kancs & Patrizio Lecca & Montserrat Lopez-Cobo & Philippe Monfort & Damiaan Persyn & , 2016. "RHOMOLO-v2 Model Description: A spatial computable general equilibrium model for EU regions and sectors," JRC Working Papers JRC100011, Joint Research Centre (Seville site).
    24. d’Artis Kancs, 2006. "The economic geography of labour migration: Competition, competitiveness and development," EERI Research Paper Series EERI_RP_2006_01, Economics and Econometrics Research Institute (EERI), Brussels.
    25. Ramona Pîrvu & Roxana Bădîrcea & Alina Manta & Mihaela Lupăncescu, 2018. "The Effects of the Cohesion Policy on the Sustainable Development of the Development Regions in Romania," Sustainability, MDPI, Open Access Journal, vol. 10(7), pages 1-1, July.

    More about this item

    Keywords

    Economic modelling; R&D; innovation; knowledge spillovers; spatial equilibrium; economic geography.;

    JEL classification:

    • D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies
    • F1 - International Economics - - Trade
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location
    • R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics

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