Abstract
Although spatial computable general equilibrium model is a convenient tool for transport project appraisal, the application of the model to transport improvement project in metropolitan area requires to consider agglomeration externality. The difficulty of calibration of the model due to lack of sufficient data for detailed classified region is also the issue to tackle with. This paper builds a spatial computable general equilibrium model based on Dixit-Stiglitz type monopolistic competition model, which features agglomeration effects explicitly. We also propose the procedure for the model application to multi-regional economy classified into municipality level. We firstly estimate the parameters using the trade data for multi-regional economy classified into larger-scaled region which is relatively easy to get. Pseudo Poisson Maximum Likelihood method gives more desirable estimation results than OLS approach. The estimated parameters are imported to the detailed classified multi-regional economy and the model calibration to the benchmark data for Tokyo Metropolitan Area is implemented. We then apply the model to the circular expressway project scenario, including virtual policy scenarios, and investigate the aspects of spatial distribution of benefit.
