This paper evaluates the effectiveness of European Cohesion Policy in the regions of 12 EU countries in the period 1991–2008, on the basis of a spatial growth model, which allows for the identification of both direct and indirect effects of EU funds on GDP per worker growth. We find that...

I study place based policies under local political economy constraints, asking whether transfers across regions can foster regional convergence. I show that, if local workers can vote over the within-region allocation of the transfers, these may be spent unproductively and be ineffective in...