Working Papers
Date: 24 oct 2013
Period: 2014-2020
Theme: Business support, Evaluation, Research & Development, Social inclusion, Jobs, Education and Training, Structural Funds management and Governance
Languages: en
The paper presents the newly developed dynamic spatial general equilibrium model of European Commission, RHOMOLO. 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 well 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.