This chapter provides a description of the RHOMOLO model, a Spatial CGE model, developed and used by the European Commission for the impact assessment of policies at the regional level. Special emphasis is put on the innovation mechanisms underlying the model. Moreover, it discusses the...

This paper investigates the role of political representation in explaining geographical variation in social security and income tax transfers. To quantify the causal link going from political representation to transfers, we identify two sets of exogenous changes in political representation and...

This paper considers the wage demand of a sector-level monopoly union facing internationally mobile firms. A simple two-country economic geography model describes how firms relocate in response to international differences in production costs and market size. In contrast to standard models, the...