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RHOMOLO : A dynamic spatial general equilibrium model for assessing the impact of cohesion policy
Author(s) -
Brandsma Andries,
Kancs d'Artis,
Monfort Philippe,
Rillaers Alexandra
Publication year - 2015
Publication title -
papers in regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.937
H-Index - 64
eISSN - 1435-5957
pISSN - 1056-8190
DOI - 10.1111/pirs.12162
Subject(s) - cohesion (chemistry) , economies of agglomeration , general equilibrium theory , economics , human capital , partial equilibrium , dynamic equilibrium , economic geography , econometrics , computer science , microeconomics , economic growth , physics , quantum mechanics , thermodynamics
Abstract The paper presents the newly developed dynamic spatial general equilibrium model of E uropean Commission, RHOMOLO , and proposes its future extensions. The model incorporates several elements from economic geography in a novel and theoretically consistent way. It describes the location choice of different types of agents and captures the interplay between agglomeration and dispersion forces in determining the spatial equilibrium. The model is also dynamic as it allows for the accumulation of factors of production, human capital and technology. This makes RHOMOLO particularly suited for simulating policy scenario related to the EU cohesion policy and for the analysis of its impact on the regions and the Member States of the union.