A model-based assessment of the macroeconomic impact of EU structural funds on the new Member States - Janos Varga and Jan in ’t Veld
Author(s): Janos Varga, European Commission and Jan in 't Veld, European Commission
A model-based assessment of the macroeconomic impact of EU structural funds on the new Member States - Janos Varga and Jan in ’t Veld (554 kB)
Summary for non-specialists (79 kB)
This paper gives a model-based analysis of the potential macro-economic impact of European Union Structural and Cohesion Funds payments on the economies of the new Member States.
The model used is a four-region DSGE model with human capital accumulation and endogenous technological change. The framework that we adopt is the Jones (2005) extension of the endogenous growth model, which uses a variety approach for modelling knowledge investment.
The EU funds average around 1.5 percent of GDP and are used for investment in infrastructure, human capital and R&D. The model simulations show this can lead to significant gains in output, both in the short as well as in the long run.
JEL classification:E62, H50, O11, O41
(European Economy. Economic Papers 371. March 2009.
Brussels. PDF. 34pp. Tab. Graph. Ann. Bibliogr. Free.)
|ISBN 978-92-79-11182-2 (online)||
|ISSN 1725-3187 (online)