Regionalisation of SAMs and Trade Flows in the RHOMOLO model

The Rhomolo model is a dynamic spatial general equilibrium model developed jointly by the Directorate General Regional Policy and the Joint Research Centre. Rhomolo covers the EU-27 at the NUTS 2 level and is used to assess the impact of Cohesion Policy at the regional level. The present paper gives background information on how RHOMOLO's database has been developed. In particular the paper explains how the Social Accounting Matrices (SAM's), -which contain the necessary data for the model to run and which are typically constructed at the national level-, have been regionalised in order to fit RHOMOLO's needs.