How does space affect the allocation of the EU rural development policy's expenditure? An econometric assessment

Beatrice Camaioni, Roberto Esposti, Francesco Pagliacci () and Franco Sotte ()
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Beatrice Camaioni: INEA (National Institute for Agricultural Economics), Rome - Italy
Francesco Pagliacci: Universit… Politecnica delle Marche, Dipartimento di Scienze Economiche e Sociali
Franco Sotte: Universit… Politecnica delle Marche, Dipartimento di Scienze Economiche e Sociali

No 399, Working Papers from Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali

Abstract: This paper focuses on the main drivers of the distribution of the Rural Development Policy's expenditure throughout the EU. Ex-post funds distribution across EU NUTS3 regions is considered. Three effects are admitted as major drivers: the "country effect"; the "rural effect" (i.e., the more rural a region the larger the amount of support it is expected to receive); the "pure spatial effect" (i.e. the influence of bordering regions and, in particular, of their degree of rurality). These effects are estimated adopting alternative spatial model specifications: spatial Durbin model, SEM and SAR model. Results differ across alternative specifications and definitions of rurality, but the prevalent evidence suggests that rurality matters in a counterintuitive direction, while also neighbouring regions play a role.

Pages: 47
Date: 2014-05
New Economics Papers: this item is included in nep-agr, nep-geo and nep-ure
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http://docs.dises.univpm.it/web/quaderni/pdf/399.pdf First version, 2014 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:anc:wpaper:399

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