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Improving the reliability of cohesion policy databases

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  • Samuele Lo Piano
  • Emanuele Borgonovo
  • Arnald Puy
  • Andrea Saltelli
  • John Walsh
  • Daniele Vidoni

Abstract

In this contribution, we present an innovative data-driven model to reconstruct a reliable temporal pattern for time-lagged statistical monetary figures. Our research cuts across several domains regarding the production of robust economic inferences and the bridging of top-down aggregated information from central databases with disaggregated information obtained from local sources or national statistical offices. Our test bed case study is the European Regional Development Fund (ERDF). The application we discuss deals with the reported time lag between the local expenditures of ERDF by beneficiaries in Italian regions and the corresponding payments reported in the European Commission database. Our model reconstructs the timing of these local expenditures by back-dating the observed European Commission reimbursements. The inferred estimates are then validated against the expenditures reported from the Italian National Managing Authorities (NMAs) in terms of cumulative monetary difference. The lower cumulative yearly distance of our modelled expenditures compared to the official European Commission payments confirms the robustness of our model. Using sensitivity analysis, we also analyse the relative importance of the modelling parameters on the cumulative distance between the modelled and reported expenditures. The parameters with the greatest influence on the uncertainty of this distance are the following: first, how the non-clearly regionalised expenditures are attributed to individual regions; and second, the number of backward years that the residuals of the yearly payments are spread onto. In general, the distance between the modelled and reported expenditures can be further reduced by fixing these parameters. However, the gain is only marginal for some regions. The present study paves the way for modelling exercises that are aimed at more reliable estimates of the expenditures on the ground by the ultimate beneficiaries of European funds. Additionally, the output databases can contribute to enhancing the reliability of econometric studies on the effectiveness of European Union (EU) funds.

Suggested Citation

  • Samuele Lo Piano & Emanuele Borgonovo & Arnald Puy & Andrea Saltelli & John Walsh & Daniele Vidoni, 2022. "Improving the reliability of cohesion policy databases," PLOS ONE, Public Library of Science, vol. 17(4), pages 1-15, April.
    • Handle: RePEc:plo:pone00:0266823
    DOI: 10.1371/journal.pone.0266823
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    References listed on IDEAS

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