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

Antonio Accetturo (), Guido de Blasio () and Lorenzo Ricci

Journal of Economic Behavior & Organization, 2014, vol. 102, issue C, 74-89

Abstract: 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.

Keywords: Social capital; Political economy; Regional transfers (search for similar items in EconPapers)
JEL-codes: R1 D7 Z1 (search for similar items in EconPapers)
Date: 2014
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