Abstract
In this paper, an applied general equilibrium model is proposed, which is for impact studies of regional policies. A characteristic of this model is to be introduced from probabilistic approach. At first, spatial price equilibrium model is reformulated from this approach. In this model, discrete choice theory is used for formulation of consumer activities. Secondly this spatial price equilibrium model is combined with some models in which household and firm activities are formulated, so that an applied general equilibrium model is introduced. The solution of this model is calculated by fixed point algorism. At last, a test on the movement of this model is conducted.
