The purpose of the current project is to use a CGE (Computable General Equilibrium) model and a TSA (Tourism Satellite Account) to improve the analysis of the impact tourism and tourism policies in the Azores. The output will be a better methodology to help policy makers assess the overall impact of policies directed at the cluster and the impact of other general shocks on the cluster. The objective is to overcome the limitations of TSA’s and of CGE models. The final output will be a simulator that is capable of combining information from a CGE model and Tourism SA, for policy analysis, in line with the RIS3 priority established for the Azores. The project will improve our understanding of the underlying economic transmition mechanisms and the authorities’ capacity to design and to evaluate policies. The risks of missing the objectives justify the development of adequate models for policy analysis. The methodology should be extended to the analysis of other sectors/clusters.
BENEFICIARY: Fundação Gaspar Frutuoso
TOTAL COST: 137. 914,30€
EUROPEAN UNION FINANCING: 117. 227, 15€
The current Project seeks to develop a methodology for analysis of development vectors combining a computable general equilibrium model (CGE) and satellite accounts for the strategic clusters. This economic analysis instrument, which we will designate AZCLUST will thus be designed as a platform that integrates the two techniques. The project will thus review the applications of CGE models, the corresponding SAM matrixes and SAs to the tourism sector. The main activities will thus involve: i) review of existing models and their supporting databases; ii) review of the data bases and models that have been compiled and estimated for the Azores; iii) combining a CGE model and TSA information to enhance the predictive capacity of the data incorporating economic behavior; iv) test and apply a platform tailor-made for the case of the Azores; v) make available a simulator that can help policy makers and researchers in the analysis of policies that fall under the tourism cluster.
The objective of the current project is to develop a methodology to help policy makers both assess the overall impact of policies organized under each cluster and also to assess the impact of other general shocks on each cluster. The objective is to overcome the limitations of existing instruments such as TSA’s and of CGE models in the analysis of specific sectors. The final output will come in the form of a simulator that is capable of combining information from a CGE model and Tourism SA, for policy analysis. The use of satellite accounts will allow a better check of the boundaries of the cluster and identification of its components. Other characteristics such as the degree of regional specialization/agglomeration can also be explored using the satellite accounts. In the end the Project will deliver a methodology for integrating satellite accounts and a CGE model. These outputs will be compatible with their linkage with a CGE model to create scenarios for analysis of the RIS3 strategy.