VALIDITY AND APPLICABILITY OF A SPATIAL COMPUTABLE GENERAL EQUILIBRIUM MODEL

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VALIDITY AND APPLICABILITY OF A SPATIAL COMPUTABLE GENERAL EQUILIBRIUM MODEL

The main purpose of this paper is to examine validity and applicability of a spatial computable general equilibrium (SCGE) model by comparing the results obtained from an application of the SCGE model with the observed data, the Japanese nine-region interregional input-output table. In SCGE modelling trade models play a key role. This paper also pays a special attention to the integration of spatial and economic concepts of transport into an equilibrium framework. We show the two basic approaches to model transport sector, which generate an equivalent input-output table. After addressing a unified approach connecting these two approaches, we show the testing results of the performance of the SCGE model developed by Miyagi and Honbu.