M. Carmen Lima

The Structural Funds in Andalusia for the Programming Period 2014–2020: Time for Tightening Belts

During the period 2014–2020 it will be the first time since Spain joined the European Economic Community that the Southern region of Andalusia will not be considered as one of the Objective 1 priority areas for the European Regional Policy. This paper analyses the economic impact of the foreseeable withdrawal of an important amount of European Structural Funds in the region. Our point is to develop a dynamic general equilibrium model to assess, under different simulation scenarios, the effects of the removal of this funding on the main regional economic indicators, specially focusing on GDP growth, a key variable for the future of the region.

The effects of European funds on a regional economy: an applied general equilibrium analysis

In this work we conduct an impact analysis of European Structural Funds to assess their effect on output, prices and consumers’ income on the European region of Andalusia, in the south of Spain. For this purpose we present an Applied General Equilibrium Model for Andalusia (AGEM_A) and proceed to compare the reception of regional funds scenario to a hypothetical situation where this financial support has been removed. The AGEM_A has been numerically implemented by supplementing the statistical information provided by the Social Accounting Matrices for Andalusia corresponding to 1990, 1995 and 1999, with data included in the three Community Support Frameworks approved by the European Commission.

Using A Cge Model To Identify The Policy Trade-Off Between Unemployment And Inflation. The Efficient Phillips Curve

This paper provides a new reading of a classical economic relation: the short-run Phillips curve. Our point is that, when dealing with inflation and unemployment, policy-making can be understood as a multicriteria decision-making problem. Hence, we use so-called multiobjective programming in connection with a computable general equilibrium (CGE) model to determine the combinations of policy instruments that provide efficient combinations of inflation and unemployment. This approach results in an alternative version of the Phillips curve labelled as efficient Phillips curve. Our aim is to present an application of CGE models to a new area of research that can be especially useful when addressing policy exercises with real data. We apply our methodological proposal within a particular regional economy, Andalusia, in the south of Spain. This tool can give some keys for policy advice and policy implementation in the fight against unemployment and inflation.

An assessment of the impact of EU funds through productivity boosts using CES functions

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 techniques 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.

Rural-urban social accounting matrixes for modelling the impact of rural development policies in the EU

This report complements previous work and builds NUTS3 SAMs for twelve regions, following a careful approach, that we call the expert approach. This report investigates the results of this approach by running some simple policy simulations and providing the structural descriptions of these regions. Further, this report aims at producing testing a more automatic approach to the construction of NUTS3 SAMs, to a view of reducing the necessary time and data requirements. Using several examples, this report examines whether such automatic approach can provide reliable SAMs at NUTS3 level. It finally draws conclusions as to the usefulness of both approaches in providing tools for further policy analysis in the field of rural development policy analysis.