A CGE Approach to Measuring the Impacts of EU Structural Funds in a Small Open Economy

Mário Fortuna, Francisco José Silva and Ana Medeiros

No 3464, EcoMod2011 from EcoMod

Abstract: The objective of the current paper is to analyze the impact of the European Union (EU) funds on gross domestic product (GDP) and employment in the Azores. The theoretical model is based on a modeling platform for the Azorean economy, supported by a dynamical multi-sector computable general equilibrium model (CGE) – Azormod, which incorporates the economic behavior of six agents - firms, households, regional government, central government, European Commission and external sector- and controls for six different income levels. The simulations studied the impact in the Azorean Economy of eliminating the EU funds. As expected, the study reveals that in the absence of EU funds there would be a reduction in the public consumption and in the level of well-being of consumers while investment would increase as factor prices would decrease. GDP and employment decrease relative to the reference scenario with EU transfers. According to the model, other things being equal, it would take ten years for GDP to recover its initial levels. Employment, assuming flexible wages, recovers faster. See above See above

Keywords: Azores; General equilibrium modeling (CGE); Impact and scenario analysis (search for similar items in EconPapers)
Date: 2011-07-06
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://ecomod.net/system/files/
Our link check indicates that this URL is bad, the error code is: 403 Forbidden (http://ecomod.net/system/files/ [301 Moved Permanently]--> https://ecomod.net/system/files/)

Related works:
Journal Article: A CGE approach to measuring the impacts of EU structural funds in a small open economy (2016)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ekd:002625:3464

Access Statistics for this paper

More papers in EcoMod2011 from EcoMod Contact information at EDIRC.
Bibliographic data for series maintained by Theresa Leary ().