IMPERFEI？？ES DE MERCADO EM ECONOMIA ESPACIAL: ALGUNS RESULTADOS EXPERIMENTAIS II

the brazilian economy, with significant differences in the distribution of economic activity across regions, presents a challenge to models that adopt a perfectly competitive market structure. this paper employs an interregional cge model of the brazilian economy to explore the long-run impacts of positing changes in transportation structure and scale economies on regional and national welfare. in particular, the transportation cost structure is modeled explicitly as a margin rather than in an iceberg form; scale economies are addressed as a way to mimic the imperfectly competitive structure of the brazilian economy and to capture some of the potential impacts of core-periphery relationships in production structure. this paper complements a previous study by haddad and hewings (2005) that focused on the short-run implications of similar experiments.