This paper presents the new dynamic spatial general equilibrium (DSGE) model – RHOMOLO, which is built to support the EU policy design by undertaking holistic, micro-founded and disaggregated policy impact assessment. The RHOMOLO model is based on the theories of general equilibrium,...

This paper incorporates technological interdependence into a neoclassical regional growth framework with imperfect factor mobility, leading to a convergence equation with spatial effects. The empirical analysis is based on the estimation of a spatial Durbin panel data model and the...