| Research Activities |
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| Impact assessment of proposals for the development of the capital market in Greece |
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Category:
Microeconomic Analysis
SubCategory:
Others
Date: 23/07/2021 |
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| The study estimates the implementation cost and highlights the positive economic impact from indicative, suggested incentives to promote the domestic capital market. The analysis builds upon three stages. Firstly, it focuses upon the design and specification of selected measures, such as subsidies and tax incentives, in line with the proposals by the Committee of Experts (2020). Secondly, the study estimates the direct fiscal cost and impact on new investment, under alternative implementation scenarios. Thirdly, it estimates short-term and long-term macroeconomic effects on employment and GDP, following a simultaneous implementation of a package of measures to boost both demand and supply of placements in the domestic capital market. It is estimated that a cumulative fiscal stimulus of circa €0.5 billion over a 5-year period can trigger new investments of up to €1.6 billion over the same period, plus generate significant multiplier benefits for the real economy in terms of GDP and employment over a 20-year horizon. |
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