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 58, 140-193

Abstract: The Brazilian economy, with significant differences in the distribution of economic activity across regions, presents a challenge to models that adopt a perfectly competitive market structure. This paper employs an interregional CGE model of the Brazilian economy to explore the long-run impacts of positing changes in transportation structure and scale economies on regional and national welfare. In particular, the transportation cost structure is modeled explicitly as a margin rather than in an iceberg form; scale economies are addressed as a way to mimic the imperfectly competitive structure of the Brazilian economy and to capture some of the potential impacts of core-periphery relationships in production structure. This paper complements a previous study by Haddad and Hewings (2005) that focused on the short-run implications of similar experiments

Keywords: interregional CGE model; transportation structure; 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 (2)

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

Related works:
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:bdr:ensayo:v:27:y:2009:i:58:p:140-193

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