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Can Regional Transfers Buy Public Support? Evidence from EU Structural Policy

Author

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  • Steffen Osterloh

    (Centre for European Economic Research)

Abstract

On the occasion of the 65th birthday of Governor Klaus Liebscher and in recognition of his commitment to Austria’s participation in European monetary union and to the cause of European integration, the Oesterreichische Nationalbank (OeNB) established a “Klaus Liebscher Award”. It has been be offered annually since 2005 for up to two excellent scientific papers on European monetary union and European integration issues. The authors must be less than 35 years old and be citizens from EU member or EU candidate countries. Each “Klaus Liebscher Award” is worth EUR 10,000. The winning papers of the seventh Award 2011 were written by Steffen Osterloh and by Friederike Niepmann and Tim Schmidt-Eisenlohr (shared award). Steffen Osterloh’s paper is presented in this Working Paper while Friederike Niepmann’s and Tim Schmidt-Eisenlohr’s contribution is contained in Working Paper 170. In this paper Steffen Osterloh starts from the observation that regional transfers are often assumed to have an impact on the public opinion towards the benefactor, but that empirical evidence is still scarce. In his paper the author tests this hypothesis for the structural funds of the European Union (EU) by combining detailed data on regional transfers with public opinion surveys. A positive impact of transfers on public support for the EU can be confirmed. Moreover, the author scrutinizes the role of awareness of being a recipient of funds in this process. In particular, he finds that the impact of the amount of transfers on the individual’s awareness is heterogenous and particularly depends on education. Finally, the author shows that the type of information source which arouses the citizen’s awareness of the transfers affects the impact on his opinion.

Suggested Citation

  • Steffen Osterloh, 2011. "Can Regional Transfers Buy Public Support? Evidence from EU Structural Policy," Working Papers 169, Oesterreichische Nationalbank (Austrian Central Bank).
    • Handle: RePEc:onb:oenbwp:169
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    References listed on IDEAS

    as
    1. Albert Solé-Ollé & Pilar Sorribas-Navarro, 2008. "Does partisan alignment affect the electoral reward of intergovernmental transfers?," Working Papers 2008/2, Institut d'Economia de Barcelona (IEB).
    2. Albert Sole-Olle & Pilar Sorribas-Navarro, 2008. "Does partisan alignment affect the electoral reward of intergovernmental transfers?," Working Papers in Economics 206, Universitat de Barcelona. Espai de Recerca en Economia.
    3. Sophia Rabe-Hesketh & Anders Skrondal, 2012. "Multilevel and Longitudinal Modeling Using Stata, 3rd Edition," Stata Press books, StataCorp LP, edition 3, number mimus2, March.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Crescenzi, Riccardo & Di Cataldo, Marco & Giua, Mara, 2020. "It’s not about the money. EU funds, local opportunities, and Euroscepticism," Regional Science and Urban Economics, Elsevier, vol. 84(C).
    2. Fidrmuc, Jarko & Hake, Mariya & Stix, Helmut, 2013. "Households’ foreign currency borrowing in Central and Eastern Europe," Journal of Banking & Finance, Elsevier, vol. 37(6), pages 1880-1897.
    3. Enrique López‐Bazo, 2022. "The Impact of Cohesion Policy on Regional Differences in Support for the European Union," Journal of Common Market Studies, Wiley Blackwell, vol. 60(5), pages 1219-1236, September.
    4. Lechler, Marie, 2018. "Employment Shocks and anti-EU Sentiment," Discussion Papers in Economics 49414, University of Munich, Department of Economics.
    5. Riccardo Crescenzi & Marco Di Cotaldo & Mara Guia, 2019. "It’s not about the money! EU funds, local opportunities, and the Brexit vote," LEQS – LSE 'Europe in Question' Discussion Paper Series 149, European Institute, LSE.
    6. Matthias Wrede, 2015. "Akzeptanz der Förderung gleichwertiger Lebensverhältnisse und Arbeitsbedingungen," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 35(1), pages 103-119, February.
    7. Fusaro, Stefano & Scandurra, Rosario, 2023. "The impact of the European social fund on youth education and employment," Socio-Economic Planning Sciences, Elsevier, vol. 88(C).
    8. Gabriela Borz & Heinz Brandenburg & Carlos Mendez, 2022. "The impact of EU Cohesion Policy on European identity: A comparative analysis of EU regions," European Union Politics, , vol. 23(2), pages 259-281, June.
    9. repec:onb:oenbwp:y::i:171:b:1 is not listed on IDEAS
    10. Lechler, Marie, 2019. "Employment shocks and anti-EU sentiment," European Journal of Political Economy, Elsevier, vol. 59(C), pages 266-295.

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    More about this item

    Keywords

    regional policy; vote purchasing; public opinion; European Union;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • F59 - International Economics - - International Relations, National Security, and International Political Economy - - - Other
    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects

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