| Author (Corporate) | European Commission: DG Economic and Financial Affairs |
|---|---|
| Series Title | European Economy: Economic Papers |
| Series Details | No. 371, March 2009 |
| Publication Date | March 2009 |
| ISBN | 978-92-79-11182-2 |
| ISSN | 1725-3187 |
| EC | KC-AI-09-371-EN-N |
| Content Type | Journal | Series | Blog, Report |
|
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. |
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| Source Link | http://ec.europa.eu/economy_finance/publications/publication_summary14340_en.htm |
| Countries / Regions | Europe |
