A sub-national version of the GTAP model for Italy

Gabriele Standardi, Francesco Bosello and Fabio Eboli

No 332304, Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project

Abstract: We develop a sub-national version of the GTAP model for Italy. The upgraded model allows assessing more properly the trade and environmental policies and/or shocks, whose effects can be largely different within a country. We use an innovative method to estimate bilateral trade flows across sub-national regions. In addition, the theoretical structure is modified in order to incorporate the possibility of an increasing spatial mobility in both factors and goods market at sub-country level. We carry out a simple experiment to test the robustness of our model. Results are consistent with the standard CGE assumptions; moving towards more competitive and integrated markets a negative shock results in a lower loss in terms of welfare.

Keywords: International Relations/Trade; Environmental Economics and Policy (search for similar items in EconPapers)
Pages: 20
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:ags:pugtwp:332304

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