A Tale of an Unwanted Outcome: Transfers and Local Endowments of Trust and Cooperation
55 Pages Posted: 11 Jul 2014
Date Written: April 24, 2014
Transfers can do good; however, they can also result in massive failures. This paper presents a model that highlights the ambiguous nature of the impact of transfers on local endowments of social capital. It then describes an empirical investigation that illustrates that the receipt of EU structural funds causes a deterioration of the endowments of trust and cooperation in the subsidized regions.
Keywords: social capital, political economy, regional transfers
JEL Classification: R1, D7, Z1
Suggested Citation: Suggested Citation