Macro-regional evaluation of the structural funds using the Hermin modelling framework

<i> Macro-regional evaluation of the Structural Funds using the HERMIN modelling framework </i> (di John Bradley, Edgar Morgenroth and Gerhard Untiedt) - ABSTRACT: A particular focus of the Structural Funds is on Objective 1 regions that lag behind in terms of their GDP per capita relative to the EU average. The amount of investment that is funded through the Structural Funds by the EU is substantial and consequently EU legislation requires the appraisal of the policies undertaken. Our modelling framework HERMIN has been widely applied to Structural Fund analysis at the national level and macro-regional level. The HERMIN framework is based on a small open economy model. Importantly it incorporates mechanisms, which are based on the endogenous growth literature, which allow it to capture the long-run supply side impact of the Structural Funds along with the short run Keynesian impact. This paper reviews this modelling framework and shows the impact that the Structural Funds appear to have had during the 1994-1999 programming period.