Assessing the Effects of European Regional Policy in the South of Spain: A Price Model

Abstract

Social Accounting Matrices (SAM) are databases that focus on the intersectoral relationships in a given economy that close the circular flow of income. This article deals with the European Regional Development Fund (ERDF) in Andalusia, a Spanish region that European regional policy classifies in Objective 1. We apply the Leontief model to selected SAMs for the years 1990, 1995, and 1999, in order to develop a price model for assessing the impact of this funding on aggregate and sectoral prices.