This paper evaluates the impact of the structural and cohesion funds received by
Spain in the period 2007–2013. The analysis is performed with a detailed computable
general equilibrium (CGE) model calibrated with a SAM for Spain in 2005 elaborated
by the authors, which contains highly detailed information on capital goods and tax
rates. The aim of this paper is to quantify the short-run efects of the EU funds in the
Spanish economy, which can help economic recovery. Additionally, it is evaluated to
what extent these short-run efects may be over- or underestimated due to the closure
rule used in this kind of models (neoclassical or Keynesian). The closure determines the
endogenous variables in the market clearance conditions, and they afect the results of
shocks in fnal demand. The conclusions show that neoclassical closure, used in previ‑
ous CGE studies done for Spain, underestimates the impact they have on employment
and GDP and captures a fctitious shock in private investment. In this case, employ‑
ment and real GDP do not almost change, while under Keynesian rule they increase in
1.2 and 0.68%, respectively. These results invalidate some of the estimates derived from
previous studies and suggest that the best option to quantify the likely positive shortrun
efects of raising public investment is only captured through Keynesian closure.

• The short‑run efects of EU funds in Spain using a CGE model: the relevance of macro‑closures