Distributive Politics and Intergovernmental Transfers: The Local Allocation of European Union Structural Funds

European Union Politics, 13(3), 2012

44 Pages Posted: 27 Mar 2016 Last revised: 29 Mar 2016

Date Written: September 1, 2012

Abstract

The European Union budget is distributed primarily in the form of intergovernmental grants to sub-state governments, which invest the grants in local projects. Transfers are allocated under the auspices of the European structural funds. This paper assesses the causal links between electoral incentives on the recipient side, European funding goals and local grant allocation. Tobit regressions of the allocation patterns in 419 local districts in Germany for the period between 2000 and 2006 suggest the following: Although recipient sub-state governments enjoy substantial discretion in selecting projects, their distributive choices are largely in accord with European goals. As theoretically predicted, however, there is robust evidence that the local allocation of structural funds is distorted by sub-state governments’ electoral concerns.

Keywords: Distributive politics, EU fiscal policy, intergovernmental grants, structural funds

JEL Classification: H30, H87

Suggested Citation

Dellmuth, Lisa Maria and Stoffel, Michael, Distributive Politics and Intergovernmental Transfers: The Local Allocation of European Union Structural Funds (September 1, 2012). European Union Politics, 13(3), 2012, Available at SSRN: https://ssrn.com/abstract=2755031

Lisa Maria Dellmuth (Contact Author)

Stockholm University ( email )

Universitetsvägen 10
Stockholm, Stockholm SE-106 91
Sweden

HOME PAGE: http://www.lisadellmuth.se

Michael Stoffel

University of Konstanz ( email )

Fach D-144
Universitätsstraße 10
Konstanz, D-78457
Germany

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
36
Abstract Views
290
PlumX Metrics