Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/52419 
Year of Publication: 
2011
Series/Report no.: 
Kiel Working Paper No. 1731
Publisher: 
Kiel Institute for the World Economy (IfW), Kiel
Abstract: 
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.
Subjects: 
spatial dynamic CGE modeling
multiple optimizing agents
transport costs
JEL: 
C68
D58
O41
R13
Document Type: 
Working Paper

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