Handling Market Imperfections in a Spatial Economy: Some Experimental Results II

Eduardo Haddad and Geoffrey Hewings

Revista ESPE - Ensayos Sobre Política Económica, 2009, vol. 27, issue 58, No 5846, 140-193

Abstract: The Brazilian economy, with significant differencesin the distribution of economic activity acrossregions, presents a challenge to models that adopt aperfectly competitive market structure. This paperemploys an interregional CGE model of the Brazilianeconomy to explore the long-run impacts ofpositing changes in transportation structure andscale economies on regional and national welfare.In particular, the transportation cost structure ismodeled explicitly as a margin rather than in an icebergform; scale economies are addressed as a wayto mimic the imperfectly competitive structure ofthe Brazilian economy and to capture some of thepotential impacts of core-periphery relationshipsin production structure. This paper complementsa previous study by Haddad and Hewings (2005)that focused on the short-run implications of similarexperiments.

Keywords: interregional CGE model; transportationstructure; scale economies. (search for similar items in EconPapers)
JEL-codes: C68 D43 R13 (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (3)

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https://doi.org/10.32468/Espe.5804

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Journal Article: HANDLING MARKET IMPERFECTIONS IN A SPATIAL ECONOMY: SOME EXPERIMENTAL RESULTS II (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:col:000107:005846

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