Martin Christensen, Andrea Conte, Filippo Di Pietro, Patrizio Lecca, Giovanni Mandras

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The Economic Potential of the Third Strand of the Investment Plan for Europe: A General Equilibrium Assessment

  • Abstract

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Keywords: Investment Plan for Europe, impact assessment, general equilibrium model.

This paper uses a general equilibrium framework to evaluate the macroeconomic impacts of the legislative measures contained in the third strand of the Investment Plan for Europe. Differently from most of the existing European policies evaluated with economic impact assessments, these measures do not involve any funds or money injections in the economy. Rather, they aim at either lowering or removing the remaining obstacles to a fully functioning European single market. We find that the removal of those barriers may lead to substantial economic gains for the regions in the European Union. Our results indicate considerable heterogeneity in economic impact across regions.

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