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

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Listed:
  • Antonio Accetturo

    (Bank of Italy)

  • Guido de Blasio

    (Bank of Italy)

  • Lorenzo Ricci

    (ECARES-ULB)

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.

Suggested Citation

  • Antonio Accetturo & Guido de Blasio & Lorenzo Ricci, 2014. "A tale of an unwanted outcome: transfers and local endowments of trust and cooperation," Temi di discussione (Economic working papers) 959, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:wptemi:td_959_14
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    References listed on IDEAS

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    More about this item

    Keywords

    social capital; political economy; regional transfers;
    All these keywords.

    JEL classification:

    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • Z1 - Other Special Topics - - Cultural Economics

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