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Determinants of the assignment of EU funds to Portuguese municipalities

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  • Linda Veiga

Abstract

The paper examines the determinants of the assignment of EU funds to Portuguese municipalities using a large and unexplored dataset covering all (278) mainland municipalities over 15 years. Empirical results reveal that besides normative objectives, political motivations also influence the distribution of funds by the national government across municipalities. Grants to municipalities increase during local election years, and more funds are transferred to municipalities where legislative elections have been closely contested and where the ruling national party had been supported by voters. Copyright Springer Science+Business Media, LLC 2012

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  • Linda Veiga, 2012. "Determinants of the assignment of EU funds to Portuguese municipalities," Public Choice, Springer, vol. 153(1), pages 215-233, October.
    • Handle: RePEc:kap:pubcho:v:153:y:2012:i:1:p:215-233
    DOI: 10.1007/s11127-011-9786-y
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    2. Andrew Q. Philips, 2016. "Seeing the forest through the trees: a meta-analysis of political budget cycles," Public Choice, Springer, vol. 168(3), pages 313-341, September.
    3. Kayode Taiwo, 2022. "Intergovernmental Transfers and Own Revenues of Subnational Governments in Nigeria," Hacienda Pública Española / Review of Public Economics, IEF, vol. 240(1), pages 31-59, March.
    4. Matuszak Piotr & Totleben Bartosz & Piątek Dawid, 2022. "Political alignment and the allocation of the COVID-19 response funds—evidence from municipalities in Poland," Economics and Business Review, Sciendo, vol. 8(1), pages 50-71, April.
    5. Susana Peralta & João Pereira dos Santos, 2020. "Who seeks reelection: local fiscal restraints and political selection," Public Choice, Springer, vol. 184(1), pages 105-134, July.
    6. Banaszewska, Monika & Bischoff, Ivo, 2021. "Grants-in-aid and election outcomes in recipient jurisdictions: The impact of EU funds on mayoral elections in Poland," European Journal of Political Economy, Elsevier, vol. 68(C).
    7. Monika Banaszewska & Ivo Bischoff, 2018. "Grants-in-aid and the prospect of re-election: The impact of EU funds on mayoral elections in Poland," MAGKS Papers on Economics 201822, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    8. Burret, Heiko T. & Feld, Lars P. & Schaltegger, Christoph A., 2022. "Fiscal federalism and economic performance new evidence from Switzerland," European Journal of Political Economy, Elsevier, vol. 74(C).
    9. Pablo Garofalo & Daniel Lema & Jorge M. Streb, 2020. "Political budget cycles and voting within a federal country: The influence of political alignment," Economics and Politics, Wiley Blackwell, vol. 32(2), pages 305-334, July.
    10. Monika Banaszewska & Ivo Bischoff, 2016. "The political economy of EU-funds in Poland: evidence for the period 2007-2013," MAGKS Papers on Economics 201618, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    11. Pablo Garofalo & Daniel Lema & Jorge M. Streb, 2016. "Party alignment, political budget cycles and vote within a federal country," CEMA Working Papers: Serie Documentos de Trabajo. 601, Universidad del CEMA, revised May 2017.
    12. Lopes da Fonseca, Mariana, 2017. "Political determinants of municipal accounts: Quasi-experimental evidence from Portugal," University of Göttingen Working Papers in Economics 238, University of Goettingen, Department of Economics, revised 2017.
    13. Viorel Craciuneanu & Daniel Stefan, 2015. "Budget Level of Social Security Pension in Romania Compared to Social Aid Established by the Legislator," Knowledge Horizons - Economics, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 7(1), pages 116-121, March.

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    More about this item

    Keywords

    Fiscal federalism; Political economy; Local governments; EU funds; Portugal; D72; H72; R58;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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