| Author (Corporate) | European Commission: DG Economic and Financial Affairs |
|---|---|
| Series Title | European Economy: Economic Papers |
| Series Details | No.422, September 2010 |
| Publication Date | September 2010 |
| ISBN | 978-92-79-14908-5 |
| ISSN | 1725-3187 |
| EC | KC-AI-10-422-EN-N |
| Content Type | Journal | Series | Blog, Report |
|
This paper provides an assessment of the potential macro-economic impact of Cohesion Policy using a microfounded dynamic general equilibrium model with semi-endogenous growth and endogenous human capital accumulation and considers the impact of co-financing condition and faster absorption of funds. EU Cohesion policy supports investment in infrastructure, R and D and human capital in Europe's poorer regions. This paper provides a model-based assessment of the potential macro-economic impact of these fiscal transfers using a microfounded dynamic general equilibrium model with semi-endogenous growth 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. Co-financing conditions are found to raise the long term output effects. Delays in spending profiles lead to lower gains. |
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| Source Link | http://ec.europa.eu/economy_finance/publications/economic_paper/2010/ecp422_en.htm |
| Countries / Regions | Europe |
