2014 Volume 70 Issue 5 Pages I_173-I_186
The Spatial Computable General Equilibrium (SCGE) models have been empirically applied at several spatial sizes such as international and interregional scale. These models require a decision making model for trade change. The trade model is one of critical component because the SCGE model provides the effective information at each regional zone. Therefore, the characteristics of these trade models should be cleared. This paper focus on the interregional trade model which has not been cleared the theoretical and empirical characteristic. Interregional trade model is defined by two approaches which are Armington approach and Dispersed Spatial Price Equilibrium approach. Although these models have been already empirically installed to the SCGE model, these have some theoretical or empirical problem. In this paper, we propose some improvements for these problems and show the characteristics of each model.
