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Fair Division Approach for the European Union’s Structural Policy Budget Allocation: An Application Study

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  • Ewa Kiryluk-Dryjska

    (Poznań University of Life Sciences)

Abstract

Fairness of resource allocation remains one of the basic criteria of public choice. Taking fairness into account in public resource allocation is critically important when decision-making creates conflicts of interest among potential stakeholders. The European Union’s structural policy budget allocation is especially prone to such conflicts, mainly due to its complexity and lack of commonly accepted indexes to measure its effects. The objective of this paper is to evaluate if a fair-division algorithm can be effectively implemented in practice to diminish conflicts and provide a fair allocation of resources. The practical application involves a problem of the EU’s rural-development policy budget in Poland. The algorithm provides a simple formal framework for budget allocation and utilizes structural program evaluation questionnaires of the key stakeholder groups. The provided example demonstrates that the implementation of a fair division algorithm is feasible in practice. The algorithm is flexible, robust to variation in pre-set budget constraints, and results in a sensible solution that achieves consensus among the stakeholder groups.

Suggested Citation

  • Ewa Kiryluk-Dryjska, 2014. "Fair Division Approach for the European Union’s Structural Policy Budget Allocation: An Application Study," Group Decision and Negotiation, Springer, vol. 23(3), pages 597-615, May.
    • Handle: RePEc:spr:grdene:v:23:y:2014:i:3:d:10.1007_s10726-013-9346-6
    DOI: 10.1007/s10726-013-9346-6
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    Cited by:

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    2. Kiryluk-Dryjska, Ewa & Beba, Patrycja, 2018. "Region-specific budgeting of rural development funds—An application study," Land Use Policy, Elsevier, vol. 77(C), pages 126-134.
    3. José-Manuel Giménez-Gómez & Foroogh Salekpay & Cori Vilella, 2023. "How to distribute the European regional development funds through a combination of egalitarian allocations: the constrained equal losses min," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-8, December.
    4. María-José Solís-Baltodano & José-Manuel Giménez-Gómez & Josep E. Peris, 2022. "Distributing the European structural and investment funds from a conflicting claims approach [Verteilung der europäischen Struktur- und Investitionsfonds aus einem kollidierenden Forderung Ansatz]," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 42(1), pages 23-47, April.
    5. Salekpay, Foroogh & Giménez-Gómez, José Manuel, 2022. "How to distribute the ERDF funds through a combination of egalitarian allocations: the CELmin," Working Papers 2072/535073, Universitat Rovira i Virgili, Department of Economics.
    6. Sebastian Cano-Berlanga & María-José Solís-Baltodano & Cori Vilella, 2023. "The Art of Sharing Resources: How to Distribute Water during a Drought Period," Games, MDPI, vol. 14(5), pages 1-16, August.

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