Modelling the Policy Instruments of the EU Cohesion Policy

The objective of this paper is to describe how to model the policy instruments of public investment policies in a Computable General Equilibrium (CGE) framework. The discussion will take place in the context of EU Cohesion Policy(ECP) and by presenting the aforementioned model using the Regional Holistic Model (RHOMOLO), a multi-regional and multi-sectoral dynamic general equilibrium model with endogenous growth engines. This model is currently being developed and tested for the Directorate-General for Regional Policy (DG REGIO) by a consortium led by the Netherlands Organisation for Applied Scientific Research (TNO) and in cooperation with the Joint Research Centre-Institute of Prospective Technological Studies (JRC-IPTS).