Navigation path

The Potential Impact of EU Cohesion Policy Spending in the 2007-13 Programming Period: A Model-Based

Janos Varga and Jan in 't Veld, European Commission

The Potential Impact of EU Cohesion Policy Spending in the 2007-13 Programming Period: A Model-Based Analysispdf(2 MB) Choose translations of the previous link 

Summary for non-specialistspdf(86 kB) Choose translations of the previous link 

This paper provides an assessment of the potential macro-economic impact of Cohesion Policy using a microfounded dynamic general equilibrium model with semi-endogenous growth and endogenous human capital accumulation and considers the impact of co-financing condition and faster absorption of funds.

EU Cohesion policy supports investment in infrastructure, R and D and human capital in Europe's poorer regions. This paper provides a model-based assessment of the potential macro-economic impact of these fiscal transfers using a microfounded dynamic general equilibrium model with semi-endogenous growth and endogenous human capital accumulation. The simulations show the potential benefits of Structural Funds with significant output gains in the long run due to sizeable productivity improvements. Co-financing conditions are found to raise the long term output effects. Delays in spending profiles lead to lower gains.

(European Economy. Economic Papers. 422. September 2010. Brussels. PDF. 66pp. Tab. Graph. Bibliogr. Free.)

KC-AI-10-422-EN-N (online)
ISBN 978-92-79-14908-5 (online)
ISSN 1725-3187
doi:10.2765/43684 (online)

JEL classification: C53, E62, O30, O41

Additional tools

  • Print version 
  • Decrease text 
  • Increase text