The TIGER model : application of detailed passenger and freight transport in a regional CGE setting

The present paper describes the construction and first empirical application of the TIGER model (TIGER is an abbreviation of "Transport and Infrastructure General Equilibrium model for Regions"). The TIGER model belongs to the group of regional CGE models, applying a mix of conventional modelling techniques used in standard computable general equilibrium models and New Economic Geography elements. The TIGER model can be used to evaluate transport policies on economic and environmental effects. Innovative features of the TIGER model are the detailed modelling of the transport sector and modelling of commuting and migration decisions. The approach of the TIGER model is to model cross-border related transport policies on a disaggregate level, with freight and passenger transport flows, allowing for different transport modes (road, water, rail), distinguishing between public and private transport, and for different transport motives. Commuting trips will be modelled in detail, by a location-attraction function, jointly determining area of residence and place of work. The TIGER model is constructed as a regional model on the NUTS-3 level for Belgium, the Netherlands, Luxemburg and a part of Germany, where regions are linked by interregional trade flows, transport trips and migration. In a similar way the model can be extended to all NUTS-3 regions in Europe. This paper will relate on the construction of the database for the model and the addition of innovative elements in the model, necessary to model transnational passenger and freight flows. The construction of the model is based on the available data in the TRANSTOOLS database. The detail offered by the TIGER model allows for a quantitative evaluation of effects of several transport policies with a transnational dimension in the Benelux and Germany. We will present results of the TIGER model based on a current project in the Benelux.