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A tale of an unwanted outcome: transfers and local endowments of trust and cooperation

  • Antonio Accetturo

    ()

    (Bank of Italy)

  • Guido de Blasio

    ()

    (Bank of Italy)

  • Lorenzo Ricci

    ()

    (ECARES-ULB)

Transfers can do good; however, they can also result in massive failures. This paper presents a model that highlights the ambiguous nature of the impact of transfers on local endowments of social capital. It then describes an empirical investigation that illustrates that the receipt of EU structural funds causes a deterioration of the endowments of trust and cooperation in the subsidized regions.

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Paper provided by Bank of Italy, Economic Research and International Relations Area in its series Temi di discussione (Economic working papers) with number 959.

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Date of creation: Apr 2014
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Handle: RePEc:bdi:wptemi:td_959_14
Contact details of provider: Postal: Via Nazionale, 91 - 00184 Roma
Web page: http://www.bancaditalia.it

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