We reconsider the decomposition of the comparative statics effect of a factor price increase on (unconditional) factor demand into a substitution and a size (or level) effect. While for the own price effect the substitution effect and the size effect go into the same negative direction, the...

The paper shows that in a spatial price equilibrium under monopolisitc competition welfare can be increased by subsidising transport.

This paper quantifes regional welfare efects of new transport links, which are going to be established in the framework of Trans-European Networks (TEN).

The aim of this paper is to compare empirically the effects of transport cost reductions due to infrastructure investments, emerging under different market structures. To this end, a computable spatial general equilibrium model with costly interregional trade is presented, which is calibrated...

This paper presents a framework for analysing the effects of economicdevelopment in Eastern Europe on Austria's regions. Therefore we concentrate on the effects of enhanced East-West trade, which results from the economic development in the transition countries.

This paper estimates welfare effects resulting from reduced transaction costs in international trade, using a static multiregional general equilibrium model. The kernel of the model is the trade part specified in Dixit-Stiglitz-style. Interregional trade shows a gravity pattern due to...