Article ID Journal Published Year Pages File Type
5055828 Economic Modelling 2011 17 Pages PDF
Abstract

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 macroeconomic 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.

Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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