A simple numerical model is developed to study the three-dimensional structure of the steady circulation off Newfoundland. The model uses linear dynamics, a vertical eddy viscosity to parameterize the vertical mixing, and a linear parameterization of bottom friction in which the bottom stress is related to the bottom velocity. Realistic geometry and bottom topography are included. The results presented here are for an ocean of uniform density. The model is driven by specifying the sea level along the northern boundary, the inflow corresponding to the inshore and offshore branches of the Labrador Current. The model can reproduce the circulation pattern found by Greenberg and Petrie (1988), who used a vertically integrated nonlinear primitive equation model. It also enables dynamical interpretation to be given in terms of flow along f/h contours and frictional ''diffusion'' across these contours. In this connection, we investigate the dependence on the friction parameters of the transport through several sections. We also examine the onshore-offshore mass exchange over the southeastern edge of the Grand Banks. We find that the model Labrador Current flowing southward along the shelf break leads to an onshelf flux in the upper part of the water column and an offshelf flux in the bottom Ekman layer. This is caused by the frictional torque and leads to an along-slope decay of the current amplitude. Finally the limitations of the model and plans for its further development are discussed. ¿ American Geophysical Union 1989