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Determinants of the assignment of EU funds to Portuguese municipalities

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  • Linda Veiga

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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

Suggested Citation

  • 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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    File URL: http://hdl.handle.net/10.1007/s11127-011-9786-y
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    Cited by:

    1. 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).
    2. Podoaba Lucia & Oprean Delia, 2013. "An Empirical Study Of Economic Alternatives For The Elderly In Romania," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 2, pages 47-55, April.
    3. 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.
    4. Lopes da Fonseca, Mariana, 2015. "Political determinants of municipal accounts: Quasi-experimental evidence from Portugal," Center for European, Governance and Economic Development Research Discussion Papers 238, University of Goettingen, Department of Economics.

    More about this item

    Keywords

    Fiscal federalism; Political economy; Local governments; EU funds; Portugal; D72; H72; R58;

    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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