Regional Unemployment and Welfare Effects of the EU Transport Policies: Recent Results from an Applied General Equilibrium Model

Korzhenevych, Artem; Bröcker, Johannes

doi:10.1007/978-3-642-01017-0_11

Cited by 2 publications

(3 citation statements)

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“…This increased income inequality is caused by the large positive effects resulting from additional migration to the bigger agglomeration, in relation to the small effect of lower transport costs (Baldwin et al 2003). This effect was also shown in empirical NEG models with respect to the opening up of peripheral regions in Europe (Korzhenevych & Bröcker 2009).…”

Section: Theories Of Regional Economic and Social Developmentsupporting

confidence: 59%

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European Place‐based Development Policy and Sustainable Economic Agglomeration

Thissen

Oort

2010

Tijd voor Econ & Soc Geog

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The inherent tension between regional equality and economic growth (efficiency) is recently much debated in the context of place based development policy and agglomeration in the European Union. A general conclusion reached in the literature is that a policy targeted at regional equality may be harmful for economic growth. Such policy therefore should be transformed in such a way that it also promotes the mobility of both people and firms and hence facilitates the possibilities of increased agglomeration. Recent insights from economic theories suggest that agglomeration externalities are not taken into account in the migration decision of firms and people, causing the dynamic urbanisation processes to not necessarily result in a (social) welfare optimum. This is even more so if other welfare effects than GDP and product variety are taken into account. Regional economic development is not sustainable if the dynamic urbanisation processes stemming from agglomeration economies do not lead to a welfare optimum. In this paper we assess the possibility of a non-sustainable regional development path. We conclude that strong additional negative externalities of growing large agglomerations are harder to prove than negative externalities of small agglomerations becoming smaller. Moreover, the size of short run negative effects that will stimulate the migration of people has not been adequately assessed. The European Union should therefore be careful in interpreting place-based costs and benefits of growing, large agglomerations at the detriment of small regions. Copyright (c) 2010 by the Royal Dutch Geographical Society KNAG.

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Section: Theories Of Regional Economic and Social Developmentsupporting

confidence: 59%

“…2003). This effect was also shown in empirical NEG models with respect to the opening up of peripheral regions in Europe (Korzhenevych & Bröcker 2009).…”

supporting

confidence: 60%

European Place‐based Development Policy and Sustainable Economic Agglomeration

Thissen

Oort

2010

Tijd voor Econ & Soc Geog

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“…Adjustment of capital stocks to shocks is smoothed by assuming the existence of adjustment costs for the capital stock. The specification of the production and household sectors as well as of the goods market is close to an earlier static model (Bröcker, 1998) which has been widely applied under the brand name CGEurope in transport policy evaluation (Korzhenevych and Bröcker (2009) ;Bröcker et al (2010)). Like in the earlier model, we assume monopolistic competition in Dixit-Stiglitz style in the "modern sector".…”

Section: Introductionmentioning

confidence: 95%

Forward looking dynamics in spatial CGE modelling

Bröcker

Korzhenevych

2013

Economic Modelling

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. 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. Terms of use: Documents in EconStor may

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Regional Unemployment and Welfare Effects of the EU Transport Policies: Recent Results from an Applied General Equilibrium Model

Cited by 2 publications

References 5 publications

European Place‐based Development Policy and Sustainable Economic Agglomeration

European Place‐based Development Policy and Sustainable Economic Agglomeration

Forward looking dynamics in spatial CGE modelling

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