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Ripples in a Rising Tide: Why Some EU Regions Receive More Structural Funds Than Others Do. CES Working Paper, no. 157, 2008

Bodenstein, Thilo, and Kemmerling, Achim. (2008) Ripples in a Rising Tide: Why Some EU Regions Receive More Structural Funds Than Others Do. CES Working Paper, no. 157, 2008. [Working Paper]

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    Abstract

    We investigate the distribution of European Union (EU) Structural Funds across EU regions. We draw from literature concerning the political economy of national intergovernmental grants, and regarding the EU’s two-tiered bargaining process. Bargaining over the distribution of Structural Funds takes place between regions and their respective national governments, but is also influenced by bargaining that occurs on an intergovernmental level. We test our claims with a data set containing the distribution of Objective-1 and Objective-2 funds across EU regions, as well as other economic, institutional and electoral variables. Adjusting for selection bias, we find that the official allocation criteria are not sufficient determinants for explaining the distribution of regional transfers. For Objective-2 they may even be said to bear the opposite sign. Moreover, federalist regions and those with stronger electoral competition receive significantly more transfers than other regions.

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    Item Type: Working Paper
    Uncontrolled Keywords: EU Structural Funds; Two-Level Games; Fiscal Federalism
    Subjects for non-EU documents: EU policies and themes > Policies & related activities > regional policy/structural funds
    Subjects for EU documents: UNSPECIFIED
    EU Series and Periodicals: UNSPECIFIED
    EU Annual Reports: UNSPECIFIED
    Series: Series > Harvard University, Center for European Studies > CES Working Papers Series
    Depositing User: Phil Wilkin
    Official EU Document: No
    Language: English
    Date Deposited: 17 Sep 2008
    Page Range: p. 24
    Last Modified: 15 Feb 2011 17:58
    URI: http://aei.pitt.edu/id/eprint/9004

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