RegFin models

Private and public investments have effects on the economies of nations, regions, sub-regions and municipalities. The construction of mines, shopping malls, roads or a metro brings changes to the production potential, business structure, employment, income, consumption and investments of the regional economy. Larger-scale use of bio energy or mitigation of greenhouse gases also changes the regional economy. Newspapers daily report such projects and plans whose regional economic effects should be calculated. Knowing the numeric values of the effects improves the quality of decision making.

CGE (Computable General Equilibrium) simulation models are the best way to evaluate the short and long run regional economic effects of projects. Their main idea is that in the regional economy "everything affects everything". The RegFin models, developed at the Ruralia Institute of the University of Helsinki, broadly describe the relationships and linkages of the regional economy. They are suitable for many research topics because they are flexible. Changing the model by adding new details and data is easy.

CGE modelling is very popular abroad, and dissertations on it have been defended in Finland. My dissertation in 1987 was the first. I will present in these pages the methodology and the structure of the RegFin models, articles, reports and manuals. I'm hoping that this will help decision makers to see the need to analyse the regional economic effects of their projects.

Research Director, Professor
Hannu Törmä
Ruralia Institute, Seinäjoki Finland