A Sub-national CGE Model for Italy

Gabriele Standardi, Francesco Bosello and Fabio Eboli
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Fabio Eboli: Euro-Mediterranean Center on Climate Change and Fondazione Eni Enrico Mattei

No 2014.04, Working Papers from Fondazione Eni Enrico Mattei

Abstract: This paper describes a methodology to develop a Computable General Equilibrium model with a sub-national detail starting from a global database and model presenting the country-level as the highest resolution. This procedure is demonstratively applied to Italy, but can be transferred to any country/macro-region, provided regional data availability. Increasing the spatial resolution of a CGE model can be particularly useful to capture local specificities not only in response to given policy shocks, but also to environmental impacts, as, for instance, those originated by climate change, which are highly differentiated spatially. Conceptual and practical issues are treated: we use an innovative method to estimate bilateral trade flows across sub-national areas and analyse the implications of different assumptions on both factor and good intra-country mobility. We carry out a simple experiment to test the robustness of our regionalized structure.

Keywords: CGE Models; Regional Economics (search for similar items in EconPapers)
JEL-codes: C68 D58 R11 R12 R13 (search for similar items in EconPapers)
Date: 2014-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Working Paper: A Sub-national CGE Model for Italy (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:fem:femwpa:2014.04

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