A model-based analysis of the impact of Cohesion Policy expenditure 2000-06: simulations with the QUEST III endogenous R&D model
Author(s): Janos Varga and Jan in 't Veld, European Commission
A model-based analysis of the impact of Cohesion Policy expenditure 2000-06: simulations with the QUEST III endogenous R&D model - Janos Varga and Jan in 't Veld(2 MB)
Summary for non-specialists(104 kB)
More than a third of the EU budget is devoted to Cohesion Policy with the objective to foster economic and social cohesion in the European Union. Large-scale fiscal transfers are used to support investment in infrastructure, R&D and human capital.
This paper provides a model-based assessment of the potential macro-economic impact of these fiscal transfers using a DSGE model with semi-endogenous growth (Jones, 1995) 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.
JEL classification: C53, E62, O30, O41
(European Economy. Economic Papers 387. October 2009.
Brussels. PDF. 77pp. Tab. Graph. Ann. Bibliogr. Free.)
|ISBN 978-92-79-13362-6 (online)||
|ISSN 1725-3187 (online)