Spatial effects of transeuropean networks: Preliminary results from a spatial computable general equilibrium analysis
This paper quantifies regional welfare effects of new transport links, which are going to be established in the framework of Trans-European Networks (TEN). It is confined to the regional welfare effects resulting from the use of the new links for trading goods and services. Effects from the construction phase, from financing and maintenance are not considered. Use of the links for other than trade purposes, such as commuting, tourism, leisure trips et cetera are not considered either. Welfare implications of new transport links are quantified by simulating effects of transport distance reductions in a spatial computable general equilibrium model. We model a static equilibrium for two sectors (local goods and tradables) and many regions. Firms in the tradables sector supply a large number of symmetrical product varieties under monopolistic competition. Trade between regions is costly, with costs depending on transport distances through a given transport network as well as on national trade impediments. The paper explains the formal structure of the model, the calibration procedure, and the data basis for implementing the model to a system of more than 800 regions covering the entire European space. Numerical results for several scenarios regarding regarding the establishment of TEN links are presented.
|Date of creation:||1998|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://tu-dresden.de/die_tu_dresden/fakultaeten/vkw/iwv
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Brocker, Johannes & Rohweder, Herold C, 1990. "Barriers to International Trade: Methods of Measurement and Empirical Evidence," The Annals of Regional Science, Springer, vol. 24(4), pages 289-305.
- Fujita, Masahisa & Krugman, Paul & Mori, Tomoya, 1999. "On the evolution of hierarchical urban systems1," European Economic Review, Elsevier, vol. 43(2), pages 209-251, February.
- 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.
- 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.
- Kiminiori Matsuyama, 1994.
"Complementaries and Cumulative Processes In Models of Monopolistic Competition,"
1106, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Kiminori Matsuyama, 1995. "Complementarities and Cumulative Processes in Models of Monopolistic Competition," Journal of Economic Literature, American Economic Association, vol. 33(2), pages 701-729, June.
When requesting a correction, please mention this item's handle: RePEc:zbw:tudiwv:498. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.