A Helping Hand, but not a Lift. EU Cohesion Policy and Regional Development
Eva Dettmann, Sarah Fritz
IWH Discussion Papers,
No. 18,
2025
Abstract
This study provides new evidence on the impact of the EU Cohesion Policy on income growth in less developed regions. Our panel includes data from all European regions for the years 1989-2020. Using a fuzzy Regression Discontinuity Design, we model treatment dynamics by applying a random effects estimator. Based on digitized historical data, we precisely replicate the policy rule and correctly classify the regions’ eligibility status. Results show that the policy has a moderate positive effect on GDP per capita growth in the targeted regions.
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Declining Free Lunch: State Capacity and Foregone Public Spending
Sarah Fritz, Lorenzo Incoronato, Catherine van der List
RFBerlin Discussion Paper,
No. 67,
2025
Abstract
This paper documents substantial fiscal waste in the context of one the world’s largest regional development programs – the EU Cohesion Policy. We study Italy, and find that 20% of funding commitments are never paid out and funneled into unfinished or never-started projects. In our setting, this happens for reasons unrelated to fiscal constraints – municipalities appear to simply leave money on the table. Foregone spending is more prevalent in Southern regions, but there is also stark variation across municipalities within regions. We show that such under-utilization of available funds is strongly associated with limited administrative capacity of local governments.
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10.07.2025 • 21/2025
Einladung zur gemeinsamen Pressekonferenz von Leibniz-Institut für Wirtschaftsforschung Halle (IWH) und Creditreform am 15. Juli 2025 in Halle (Saale)
Seit über zwei Jahren schrumpft die wirtschaftliche Entwicklung in Sachsen-Anhalt. Die Hoffnungen auf eine Trendwende wurden zuletzt immer wieder enttäuscht. Kann der Negativtrend 2025 endlich gestoppt werden? Wie sind aktuell die Rahmenbedingungen für die mittelständischen Unternehmen im Land? Und wie bewerten sie Geschäftslage und Standort?
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Mittelfristige Projektion der gesamtwirtschaftlichen Entwicklung und Szenarien für die Erreichung der gesetzlichen Emissionsziele
Andrej Drygalla, Katja Heinisch, Oliver Holtemöller, Axel Lindner, Alessandro Sardone, Christoph Schult, Götz Zeddies
Konjunktur aktuell,
No. 4,
2024
Abstract
Das Produktionspotenzial der deutschen Wirtschaft wächst mittelfristig (2023 bis 2029) mit einer jahresdurchschnittlichen Rate von 0,3% und damit deutlich schwächer als in den Jahren zuvor. Dies ist auf eine ungünstigere Entwicklung aller drei Faktoren (Arbeitsvolumen, Kapitalstock, totale Faktorproduktivität) zurückzuführen. Das potenzielle Wachstum wird insbesondere durch den Rückgang der durchschnittlichen Arbeitszeit gedämpft.
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Alumni
IWH Alumni The IWH maintains contact with its former employees worldwide. We involve our alumni in our work and keep them informed, for example, with a newsletter. We also plan…
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DPE Courses Archive
DPE Course Programme Archive 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2025 Mathematics for Economists Roweno Heijmans (NHH Norwegian School of…
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Archive
Media Response Archive 2021 2020 2019 2018 2017 2016 December 2021 IWH: Ausblick auf Wirtschaftsjahr 2022 in Sachsen mit Bezug auf IWH-Prognose zu Ostdeutschland: "Warum Sachsens…
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10th CompNet Annual Conference
10th CompNet Annual Conference This year CompNet celebrates its 10th Annual Conference, together with Banque de France as co-host, which took place in Paris. The topic of the…
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11th Annual Conference in Luxembourg
11th Annual Conference in Luxembourg 14.-15. September 2022 in Luxembourg This year CompNet celebrated its 11th Annual Conference, together with EIB and ENRI as co-hosts, which…
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Green Transition
Green Transition Research and Policy Advice for Structural Change in the German Economy Dossier, 18.06.2024 Green Transition The green transition is a key topic of our time. In a…
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