SPATIAL PRICE EQUILIBRIUM AND THE TRANSPORT SECTOR: A TRADE‐CONSISTENT SCGE MODEL

Formulation and Analysis of a Dynamic Spatial Price Equilibrium Model

The spatial price equilibrium model begins with the Hitchcock-Koopmans transportation problem as described by Dantzig (1963). The data for this model includes a set of suppliers I and a set of markets J , with supplies ai, demands bj, transport costs cij from supplier i to market j. Cast as a planning problem, this linear program seeks a transport schedule which minimizes the cost of supplying ...

Spatial Price Equilibrium

Inter-regional Freight Transport Model based on Spatial Price Equilibrium : Empirical Analysis of Japan

Abstract: This paper formulates an inter-regional freight transport model based on the spatial price equilibrium and applies it to Japan. This model covers twenty-three types of goods with eleven different regional industrial structures under the economic equilibrium theory. The unknown parameters of the model are calibrated in the iterative computation process. At the each iterative process, b...

Sentiment Shock and Stock Price Bubbles in a Dynamic Stochastic General Equilibrium Model Framework: The Case of Iran

In this study, a model of Bayesian Dynamic Stochastic General Equilibrium (DSGE) from Real Business Cycles (RBC) approach with the aim of identifying the factors shaping price bubbles of Tehran Stock Exchange (TSE) was specified. The above-mentioned model was conducted in two scenarios. In the first scenario, the baseline model with sentiment shock was examined. In this model, stock price bubbl...

Equilibrium Number of Firms and Economic Welfare in a Spatial Price Discrimination Model

We examine the relationship between the equilibrium number of the firms entering the market and socially efficient one. Salop (1979) investigates a mill pricing model and shows that the former is larger than the latter (excess entry theorem). We find that, in contrast to Salop (1979), the equilibrium number of the firms can be either larger or smaller than the efficient one. If the entry cost i...