CEU Electronic Theses and Dissertations, 2017
| Author | Kosta, Herald |
|---|---|
| Title | The Political Economy of the Cohesion Policy: A Perspective from the Second Generation Theory of Fiscal Federalism |
| Summary | The purpose of this paper is to analyze the political economic aspects of the Cohesion Policy, in a systematic way, using the literature of the Second Generation Theory of Fiscal Federalism (SGTFF) on intergovernmental transfers. This study delineates three theoretical models, offshoots of the SGTFF literature, pork-barrel distribution, the principal-agent problem, and the flypaper effect, to explore three types of distortions that afflict the allocation and the implementation of the Cohesion Policy (CP). The first two theoretical models complement existing empirical studies on the CP, while the occurrence of a flypaper effect has not yet been tested by the pertaining literature, a gap which this study aims to address. Using an error-correction model with panel data from the EU-25 for the period 1993-2014, it asserts that the implementation of the CP instigates a disproportionate increase of government expenditure both in the short and in the long-term. |
| Supervisor | Folsz, Attila |
| Department | Political Science MA |
| Full text | https://www.etd.ceu.edu/2017/kosta_herald.pdf |
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