ECONOMETRIC MODELLING FOR SIMULATING THE ECONOMIC IMPACT OF STRUCTURAL REFORMS IN ROMANIA: A PILOT PROJECT

The aim of this research to set up a system which helps to estimate the impact of public funding from projects. The impact depends on all factors affecting demand for the good or service provided under the structural intervention at stake. Thus, the present research provides a pilot econometric model for simulating the main mechanisms that lead to public investment impact from the perspective of 42 counties for the year 2006. The importance of this time span is due to the fact that it represents the end of the second programming period for European Union funds and it reveals the impact of economic structural measures at microeconomic level. Data observed to estimate the linear regression model contain at least 50 observations and the t test, the F test and the coefficients of determination are used to analyse the worthiness of the model after prior estimation of the parameters. Findings showed that the independent element of the model is unbiased, whilst the regression coefficient is biased.