To contribute to improved assessment of the economic and environmental impact of national and EC policies implemented for promoting growth in peripheral EC countries, through the use of a common economic model.
Possible outcomes of policy decisions in peripheral countries will be identified. It will also be possible to assess how they differ from each other and how they differ from outcomes in central EC economies.
1.Design of a common modelling framework entitled HERMIN :
The Irish and Spanish models will be proposed to the other peripheral countries' contractors.
National models will be designed, distinguishing at least three production sectors: industry, services and agriculture; they will include elements of the original HERMES model.
2.Construction, testing and comparison of national models :
This will be implemented in the four participating countries. All models will pass through a strict testing procedure.
3.Use of the model framework for review of CSF 1989-93 :
Data will be collected on micro-economic benefits of infra- structural, human capital, environmental, competitiveness and r&d policies in each country. Macro-economic consequences for peripheral countries will be derived from aggregation of these data. The impacts of the CSF 1989-93 in individual peripheral economies will then be derived from a series of model simulations.
4.Use of the models for assessment of Delors II CSF proposals : The common framework model will be used for making preliminary evaluation of the DELORS II proposal.
5.Energy/environment/human capital/technical progress issues : Analysis of elements associated with long term developments such as energy-environment-growth interactions, geographical relocation of production sites in the EC, R&D-growth- productivity interactions,... will be undertaken.
6.The four models will be operated in conjunction with a world model, NICEM, developed by the National Institute of Economic and Social Research (London).
Funding SchemeCSC - Cost-sharing contracts