Forward looking dynamics in spatial CGE modelling

Johannes Bröcker and Artem Korzhenevych

No 1731, Kiel Working Papers from Kiel Institute for the World Economy

Abstract: This paper sets up a multiregional dynamic framework by combining the optimal savings model with investment adjustment costs and the spatially disaggregated model with Dixit-Stiglitz structure in the modern sector. Because of increasing product diversity on the dynamic equilibrium path, the model belongs to the category of semi-endogenous growth models. The distinction of goods, factors, firms, and households by location, and the incorporation of trade costs in the model allow to study a variety of issues in regional and transport economics. We describe the model calibration and a taylor-made solution algorithm. The functionality is demonstrated using two illustrative examples.

Keywords: spatial dynamic CGE modeling; multiple optimizing agents; transport costs (search for similar items in EconPapers)
JEL-codes: C68 D58 O41 R13 (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (4)

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Journal Article: Forward looking dynamics in spatial CGE modelling (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwkwp:1731

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