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

Economic Modelling, 2011, vol. 28, issue 1, 647-663

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.

Keywords: Cohesion Policy; Endogenous growth; R&D; Dynamic general equilibrium modelling (search for similar items in EconPapers)
JEL-codes: C53 E62 O30 O41 (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (22)

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Related works:
Journal Article: A model-based analysis of the impact of Cohesion Policy expenditure 2000-06: Simulations with the QUEST III endogenous R&D model (2011)
Working Paper: A model-based analysis of the impact of Cohesion Policy expenditure 2000-06: simulations with the QUEST III endogenous R&D model (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:28:y:2011:i:1:p:647-663

DOI: 10.1016/j.econmod.2010.06.004

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