We introduce endogenous labour supply decisions with an extensive and intensive margin in a spatial computational general equilibrium model. We show that endogenising labour supply generates an additional economic loss from a negative economic shock compared to a model with fixed labour supply....

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 report describes the first release of the macroeconomic model developed under the project Prospective Insights on R&D in ICT (PREDICT 2), a research project co-financed by the Directorate General for Communications Networks, Content and Technology and the JRC-IPTS. One of the objectives of...

We present a multi-country, multi-sector dynamic general equilibrium model with ICT and R&D-driven endogenous growth. The model presented has been developed to study the economic effects of public support to ICT R&D in the European Union. It accommodates alternative policy instruments that could...

This report presents the current version of the European Commission's spatial computable general equilibrium model RHOMOLO, developed by the Directorate-General Joint Research Centre (DG JRC) in collaboration with the Directorate-General for Regional and Urban Policy (DG REGIO) to undertake the...

This paper outlines how regional labour market adjustments to macro-economic and policy shocks are modelled in RHOMOLO through participation, employment and migration decisions of workers. RHOMOLO, being a multi-sectoral, interregional general equilibrium model, is complex both in terms of its...