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Do Benevolent Aspects Have Room in Explaining EU Budget Receipts?

Author

Listed:
  • Heikki Kauppi

    () (Department of Economics, University of Turku)

  • Mika Widgrén

    () (Department of Economics, Turku School of Economics)

Abstract

The member states have self-interested objectives and they use their voting power in the Council of Ministers (CM) to maximize their shares from the EU budget, whereas European Parliament (EP) uses its power to support benevolent objectives and equality between member states. Given the current decision procedures of the EU, EP has effective power on non-compulsory expenditure covering structural spending, but not on compulsory expenditure consisting mainly of agricultural spending. We use this fact to assess how the assumed benevolent objectives of EP turn into member states' budget receipts in a power politics based model.

Suggested Citation

  • Heikki Kauppi & Mika Widgrén, 2008. "Do Benevolent Aspects Have Room in Explaining EU Budget Receipts?," Discussion Papers 38, Aboa Centre for Economics.
  • Handle: RePEc:tkk:dpaper:dp38
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    References listed on IDEAS

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    1. Heikki Kauppi & Mika Widgrén, 2004. "What determines EU decision making? Needs, power or both?," Economic Policy, CEPR;CES;MSH, vol. 19(39), pages 221-266, July.
    2. Federico Valenciano & Annick Laruelle, 2000. "- Shapley-Shubik And Banzhaf Indices Revisited," Working Papers. Serie AD 2000-02, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    3. Moshé Machover & Dan S. Felsenthal, 2001. "The Treaty of Nice and qualified majority voting," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 18(3), pages 431-464.
    4. Dan S. Felsenthal & MoshÚ Machover, 2004. "Qualified Majority Voting Explained," Homo Oeconomicus, Institute of SocioEconomics, vol. 21, pages 573-576.
    5. Dan S Felsenthal & Moshé Machover, 2004. "Analysis of QM rules in the draft constitution for Europe proposed by the European Convention, 2003," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 23(1), pages 1-20, August.
    6. Abdul G. Noury & Gérard Roland, 2002. "More power to the European Parliament?," Economic Policy, CEPR;CES;MSH, vol. 17(35), pages 279-319, October.
    7. Stefan Napel & Mika Widgrén, 2006. "The Inter-Institutional Distribution of Power in EU Codecision," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 27(1), pages 129-154, August.
    8. Annick Laruelle & Mika Widgrén, 1998. "Is the allocation of voting power among EU states fair?," Public Choice, Springer, vol. 94(3), pages 317-339, March.
    9. Charles B. Blankart & Christian Kirchner, 2003. "The Deadlock of the EU Budget: An Economic Analysis of Ways In and Ways Out," CESifo Working Paper Series 989, CESifo Group Munich.
    10. repec:cup:apsrev:v:48:y:1954:i:03:p:787-792_00 is not listed on IDEAS
    11. Baldwin, Richard & Widgrén, Mika, 2004. "Winners and Losers Under Various Dual Majority Rules for the EU Council of Ministers," CEPR Discussion Papers 4450, C.E.P.R. Discussion Papers.
    12. Papke, Leslie E & Wooldridge, Jeffrey M, 1996. "Econometric Methods for Fractional Response Variables with an Application to 401(K) Plan Participation Rates," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 11(6), pages 619-632, Nov.-Dec..
    13. Kauppi, Heikki & Widgren, Mika, 2007. "Voting rules and budget allocation in the enlarged EU," European Journal of Political Economy, Elsevier, vol. 23(3), pages 693-706, September.
    14. Widgren, Mika, 1995. " Probabilistic Voting Power in the EU Council: The Cases of Trade Policy and Social Regulation," Scandinavian Journal of Economics, Wiley Blackwell, vol. 97(2), pages 345-356, June.
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    Cited by:

    1. Widgrén, Mika, 2008. "The Impact of Council Voting Rules on EU Decision-Making," Discussion Papers 1162, The Research Institute of the Finnish Economy.
    2. Heikki Kauppi & Mika Widgrén, 2009. "The Excess Power Puzzle of the EU Budget," Discussion Papers 45, Aboa Centre for Economics.

    More about this item

    Keywords

    European integration; EU budget; voting power;

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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