Some Extensions to Interregional Commodity-Flow Models

Kieran Donaghy, Arash Beheshtian, Ziye Zhang and Benjamin Brown-Steiner
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Kieran Donaghy: Cornell University
Arash Beheshtian: Altum Group Advisors
Ziye Zhang: Princeton University

Chapter Chapter 6 in The Co-evolution of Commodity Flows, Economic Geography, and Emissions, 2021, pp 85-98 from Springer

Abstract: Abstract Some interregional commodity-flow models, developed in the tradition of interregional input–output modeling, take on detailed characterizations of transportation networks to extend their explanatory reach, whereas others, developed in the tradition of spatial-interaction modeling, assume detailed characterizations of production. This chapter demonstrates how features of models within each of these two traditions can be integrated into two new specifications: a partial equilibrium static formulation and a dynamic formulation of production, location, and interaction. The chapter also introduces several extensions to extant commodity-flow models, including explicit treatment of trade in intermediate goods, so-called new economic geography behavioral foundations for production and interindustry and interregional trade, and endogenous determination of capital investment and employment. These extensions enable commodity-flow models to be used to analyze the impacts of recent structural changes.

Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:spr:adspcp:978-3-030-78555-0_6

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DOI: 10.1007/978-3-030-78555-0_6

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