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A model-based assessment of the macroeconomic impact of EU structural funds on the new Member States - Janos Varga and Jan in ’t Veld

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 Veldpdf(554 kB) Choose translations of the previous link 

Summary for non-specialistspdf(79 kB) Choose translations of the previous link pdf
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
DOI:10.2765/2997
(European Economy. Economic Papers. 371. March 2009. Brussels. PDF. 34pp. Tab. Graph. Ann. Bibliogr. Free.)

KC-AI-09-371-EN-N (online)
ISBN 978-92-79-11182-2 (online)
ISSN 1725-3187

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