Computable General Equilibrium Modeling for Evaluation of Regional Industrial Policy

Abstract

For regional area, A decline of industry is caused by many type of social problem. In that case, local governments try to carry out some activation policies for regional industries. However, it is impossible to compare among those evaluations now, because a common evaluation method for those policies has been confined to Input-Output table analysis calculates not benefit only economic ripple effect as an output. Therefore, the purpose of this study is evaluation among those policies by benefit applying Computable General Equilibrium. We have already developed a basic model. In this study, we expand that model to be available for an evaluation of regional industrial policy.