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Do Benevolent Aspects Have Room in Explaining EU Budget Receipts?

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  • Kauppi, Heikki
  • Widgrén, Mika

Abstract

This paper evaluates the determination of receipts from EU budget by considering a richer institutional structure than in earlier studies. We assume that the member states have self-interested objectives in CM trying to minimize their contributions within the given framework of the EU budget whereas EP is supposed to support benevolent objectives using its competence in non-compulsory expenditure, i.e. structural spending, internal and external policies and administration. CM exerts power in the allocation of both compulsory expenditure, mainly consisting of agricultural spending, and in non-compulsory expenditure. The purpose of this paper is not, however, to evaluate EP's influence but rather how the assumed benevolent objectives of EP and income differences turn into member states' budget receipts in a power politics based model.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 6778.

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Date of creation: Apr 2008
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Handle: RePEc:cpr:ceprdp:6778

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Keywords: EU budget; European integration; voting power;

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  1. Leslie E. Papke & Jeffrey M. Wooldridge, 1993. "Econometric Methods for Fractional Response Variables with an Application to 401(k) Plan Participation Rates," NBER Technical Working Papers 0147, National Bureau of Economic Research, Inc.
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  7. Napel, Stefan & Widgren, Mika, 2004. "The Inter-institutional Distribution of Power in EU Codecision," Discussion Papers 944, The Research Institute of the Finnish Economy.
  8. Kauppi, Heikki & Widgren, Mika, 2007. "Voting rules and budget allocation in the enlarged EU," European Journal of Political Economy, Elsevier, vol. 23(3), pages 693-706, September.
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  10. Heikki Kauppi & Mika Widgrén, 2004. "What determines EU decision making? Needs, power or both?," Economic Policy, CEPR;CES;MSH, vol. 19(39), pages 221-266, 07.
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  14. Federico Valenciano & Annick Laruelle, 2000. "- Shapley-Shubik And Banzhaf Indices Revisited," Working Papers. Serie AD 2000-02, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
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Cited by:
  1. Widgrén, Mika, 2008. "The Impact of Council Voting Rules on EU Decision-Making," Discussion Papers 1162, The Research Institute of the Finnish Economy.
  2. Heikki Kauppi & Mika Widgrén, 2009. "The Excess Power Puzzle of the EU Budget," Discussion Papers 45, Aboa Centre for Economics.

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