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RHOMOLO-IO: a flexible Input-Output tool for policy analysis

Sep 19 2019

A recently published JRC technical report showcases a number of analyses carried out with the RHOMOLO-IO model for policies of interest of, among others, DG EMPL, DG GROW, and DG MOVE.

The RHOMOLO-IO model

The spatial dynamic computable general equilibrium (CGE) model RHOMOLO developed by the Regional Economic Modelling team of JRC Seville in collaboration with DG REGIO (see Lecca et al., 2018) is routinely used for the impact assessment of most European and Structural Investment Funds.

The model uses as an input a multi-regional Input-Output dataset which contains information for all the NUTS2 regions of the EU (see Thissen et al., 2019). This dataset can also be use independently from the CGE model by applying the so called Leontief model in order to generate a variety of results which can be of interest for both researchers and policy makers.

The report contains multiplier analyses applied to output, GDP and employment, as well as consumption redistribution analyses and an example of a trade analysis à la Los et al. (2017, Regional Studies).

The model results

The GDP multiplier analyses have been used in the context of the TEN-T projects in order to quantify the demand-side effects related to infrastructure investments. It involves several EU regions such as, for example, those of the Baltic-Adriatic corridor.

The European Globalisation Fund is the object of an employment multiplier analysis, also applied to a study on the indirect jobs related to the coal sector in the context of the decreasing role of coal for energy production (see Alves Dias et al., 2018).

The consumption redistribution analysis has been employed in the broader context of the assessment of the macroeconomic effects of the third pillar of the Investment Plan for Europe (see Christensen et al., 2018), and the trade analysis shows the importance of EU trade for the regions of Italy.

Further information:

Full Technical Report containing the RHOMOLO-IO analysis