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Do Benevolent Aspects Have Room in Explaining EU Budget Receipts?

Author

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  • Heikki Kauppi

    (Department of Economics, University of Turku)

  • Mika Widgrén

    (Department of Economics, Turku School of Economics)

Abstract

The member states have self-interested objectives and they use their voting power in the Council of Ministers (CM) to maximize their shares from the EU budget, whereas European Parliament (EP) uses its power to support benevolent objectives and equality between member states. Given the current decision procedures of the EU, EP has effective power on non-compulsory expenditure covering structural spending, but not on compulsory expenditure consisting mainly of agricultural spending. We use this fact to assess how the assumed benevolent objectives of EP turn into member states' budget receipts in a power politics based model.

Suggested Citation

  • Heikki Kauppi & Mika Widgrén, 2008. "Do Benevolent Aspects Have Room in Explaining EU Budget Receipts?," Discussion Papers 38, Aboa Centre for Economics.
    • Handle: RePEc:tkk:dpaper:dp38
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    References listed on IDEAS

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    Cited by:

    1. Peter Schmidt, 2016. "Internal migration and EU regional policy transfer payments: A panel data analysis for the EU-28 member countries," ERSA conference papers ersa16p172, European Regional Science Association.
    2. Widgrén, Mika, 2008. "The Impact of Council Voting Rules on EU Decision-Making," Discussion Papers 1162, The Research Institute of the Finnish Economy.
    3. Heikki Kauppi & Mika Widgrén, 2009. "The Excess Power Puzzle of the EU Budget," Discussion Papers 45, Aboa Centre for Economics.

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    More about this item

    Keywords

    European integration; EU budget; voting power;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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