TD NEREUS 02-2012
Eduardo A. Haddad
This paper introduces the ARZ model – a fully operational spatial computable general equilibrium model for Lebanon – and its use for the analysis of place-based policies in Lebanon, in an attempt to bring additional insights to some of the proposals presented in the National Physical Master Plan of the Lebanese Territory. The ARZ model uses a similar approach to Haddad and Hewings (2005) to incorporate recent theoretical developments in the new economic geography. We apply the model to look at the ex ante potential spatial implications of an increase in domestic and international integration of Lebanese regions through reductions in trade costs.