The Economic Effects of the EU Budget: A VAR Analysis
This paper analyzes the allocation, redistribution and stabilization role of the EU budget from 1976 to 2001. We use impulse responses from VAR models to infer the dynamic effect of a country's GNP on its disposable income--defined as GNP plus net EU budget transfers--both in the short run (stabilization) and in the long run (redistribution). In addition, we measure the allocation role of net budget transfers through their "dynamic multiplier" effect on a country's GNP, circumventing the difficult task of estimating allocation via costs and benefits of trade flows. By disaggregating our data by subperiod and by budget component, we discover how diverse the above effects can be in different decades and for different budget programs. Finally, our framework allows us to establish some additional stylized facts that help derive relevant economic relations and useful policy conclusions.
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- Bayoumi, Tamim & Masson, Paul R., 1995.
"Fiscal flows in the United States and Canada: Lessons for monetary union in Europe,"
European Economic Review,
Elsevier, vol. 39(2), pages 253-274, February.
- Bayoumi, Tamim & Masson, Paul R, 1994. "Fiscal Flows in the United States and Canada: Lessons for Monetary Union in Europe," CEPR Discussion Papers 1057, C.E.P.R. Discussion Papers.
- Frank Barry & John Bradley & Aoife Hannan, 2001. "The Single Market, the Structural Funds and Ireland's Recent Economic Growth," Journal of Common Market Studies, Wiley Blackwell, vol. 39(3), pages 537-552, 09.
- Rafael Doménech & Antonio Maudes & Juan Varela, 2000. "Fiscal flows in Europe: The redistributive effects of the EU budget," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 136(4), pages 631-656, December.
- Brian Ardy, 1988. "The National Incidence of the European Community Budget," Journal of Common Market Studies, Wiley Blackwell, vol. 26(4), pages 401-429, 06.
- Paul R. Masson & Tamim Bayoumi, 1998.
"Liability-Creating Versus Non-Liability-Creating Fiscal Stabilization Policies: Ricardian Equivalence, Fiscal Stabilization, and EMU,"
IMF Working Papers
98/112, International Monetary Fund.
- Bayoumi, Tamim & Masson, Paul R, 1998. "Liability-Creating versus Non-liability-Creating Fiscal Stabilisation Policies: Ricardian Equivalence, Fiscal Stabilisation, and EMU," Economic Journal, Royal Economic Society, vol. 108(449), pages 1026-45, July.
- Bayoumi, Tamim & Masson, Paul R, 1998. "Liability-Creating Versus Non-Liability-Creating Fiscal Stabilization Policies: Ricardian Equivalence, Fiscal Stabilization and EMU," CEPR Discussion Papers 1984, C.E.P.R. Discussion Papers.
- Wolfgang Wessels, 1997. "An Ever Closer Fusion? A Dynamic Macropolitical View on Integration Processes," Journal of Common Market Studies, Wiley Blackwell, vol. 35(2), pages 267-299, 06.
- Pereira, Alfredo M, 1997. "Development Policies in the EU: An International Comparison," Review of Development Economics, Wiley Blackwell, vol. 1(2), pages 219-35, June.
- repec:tpr:qjecon:v:111:y:1996:i:4:p:1081-1110 is not listed on IDEAS
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