Article
An assessment of the impact of EU funds through productivity boosts using CES functions
Applied Economics Letters
(2018)
Abstract
The economic effects of European Funds on recipient countries are not without controversy. We
propose to study this issue focusing on the productivity coefficients of CES production functions
in a multisectoral, interdependent general equilibrium model. We adopt the calibration techni-
ques typically used in computational general equilibrium modelling to estimate a numerical
improvement in the productivity coefficients of the CES functions. The array of different funds
belongs to two broad categories associated with the two types of primary factors, labour and
capital, that determine the output. Once we estimate the change in productivity coefficients in
labour and in capital, we introduce them into a computable general equilibrium model and
simulate their effects, all else being equal, in order to quantify their likely economy-wide effects.
Disciplines
Publication Date
2018
DOI
https://doi.org/10.1080/13504851.2018.1508867
Citation Information
Alejandro Cardenete, Mari Carmen Lima and Ferran Sancho. "An assessment of the impact of EU funds through productivity boosts using CES functions" Applied Economics Letters (2018) Available at: http://works.bepress.com/ferran_sancho/69/