The analysis is organised along a uniform structure for the three factor markets (i.e. capital, labour, land as follows:

• The key issues and developments on each factor market in EU Member States and Candidate Countries will be identified and described.
• The institutional framework and its implications for the factor markets will be analysed for each factor in each country.
• Factor-specific theoretical frameworks will be developed.
• Based on the identification of the key issues and factor market developments and the institutional framework, two types of empirical analysis, which are based on the above developed conceptual framework, will be performed for each factor: (i) drivers of factor use, (ii) impact of changes in factor use.
• Simulation models will be used for all three factor markets to analyse the impact and interaction of the factor markets with policies under various scenarios.