Regional Holistic Model

The RHOMOLO model is designed for policy impact assessment. The explicitly modelled spatial dimension at the NUTS2 regional level makes it a unique tool for territorial impact assessment. Spatial interactions between regions are captured through trade of goods and services (which is subject to trade costs), income flows, factor mobility and knowledge spillovers, making RHOMOLO particularly well suited for simulating human capital, transport infrastructure, R&D and innovation policies.

RHOMOLO has been used for the impact assessment of the European Regional Development Fund (ERDF), Horizon Europe, the European Social Fund (ESF), and the portfolio of the European Investment Bank (including EFSI that is the first pillar of the Investment Plan for Europe). Also, the model has been recently used to evaluate the economic impact of the third pillar of the Investment Plan for Europe including the legislative proposals related to the Capital Markets Union, the Single Market Strategy, the Energy Union, and the Digital Single Market.

Moreover, RHOMOLO is used for the evaluation of specific investment projects and other reforms depending on the requests made by Member States, regional authorities, and interested DGs.