A structural multisectoral model with new economic geography linkages for Tuscany1. (15th January 2015)

• Record Type: Journal Article
• Authors: Gori, Giuseppe Francesco; Paniccià, Renato
• Is Part Of: Papers in regional science. Volume 94(2015)Supplement 1
• Page Start: S175
• Page End: S196
• Publication Date: 2015-01-15
• Subjects: R10 -- R11 -- R15; Macroeconomic modelling -- new economic geography -- input‐output -- foreign direct investments; Regional planning -- Periodicals; City planning -- Periodicals; Urbanization -- Periodicals; Economic geography -- Periodicals; 307.12
• DOI: 10.1111/pirs.12152
• Languages: English
• ISSNs: 1056-8190

Abstract

Abstract: This paper describes the Remi‐Irpet macroeconometric multisectoral model. The Remi‐Irpet, based on an input‐output core structure, has its most distinctive feature in the modelling of vertical pecuniary externalities à la Fujita‐Krugman‐Venables which represents the core dynamization mechanism. Our contribution first presents the theoretical background of the model. Second, we present a simulation exercise performed through the model in which we evaluate the structural impact of incoming FDIs for Tuscany. The impact analysis is defined in terms of ( i ) change in the overall productive capacity and ( ii ) medium‐term changes in prices and productivity, driven by the changes in the accessibility to labour and intermediate inputs.