How to distribute the ERDF funds through a combination of egalitarian allocations: the CELmin

Foroogh Salekpay and José Manuel Giménez-Gómez

Working Papers from Universitat Rovira i Virgili, Department of Economics

Abstract: As Solís-Baltodano et al. (2021) figure out, almost a third of the total European Union budget– has been set aside for the Cohesion Policy during the 2014-2020 period. The distribution of this budget is made through three main structural and investment funds, trying to provoke the convergence in the level of development of EU countries. Specifically, the authors, by analysing this situation as a claims problem (O’Neill, 1982), find out the claims solution that performs better than the others by reducing inequality promoting convergence to a greater degree (the constrained equal losses rule). Nonetheless, when using this egalitarian division of losses, regions may receive no amount of funds. This paper defines a new way to distribute the limited resources of the European Regional Development Fund (ERDF). We propose a compromise between the egalitarian approaches, i.e., we combine the egalitarian division of the funds with an egalitarian division of the losses (what regions do not get). In doing so, our proposal combines the constrained equal losses solution with the ensuring of a minimum amount to each region (sustainable bound). Finally, we provide an axiomatic analysis of the new solution and we apply it to the ERDF problem. Keywords: European Regional Development Fund; Conflicting claims problems; Egalitarian distribution; Constrained equal losses

Keywords: Fons Europeu de Desenvolupament Regional; 504 - Ciències del medi ambient (search for similar items in EconPapers)
Date: 2022
New Economics Papers: this item is included in nep-inv
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/2072/535073

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:urv:wpaper:2072/535073

Access Statistics for this paper

More papers in Working Papers from Universitat Rovira i Virgili, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Ariadna Casals ().