Do Citizens Reward Place-Based Policy? Evidence from the European Union

Governments redistribute ever larger shares of their budgets to enhance the economic performance of specific areas within their jurisdiction. Yet, there is still little evidence about one of the most fundamental questions arising from such place-based policies: Do citizens reward politicians for funding that benefits their local environment? I provide comprehensive empirical evidence from the European Union to answer the question. I leverage quasi-experimental data from an initiative that distributed vouchers to European municipalities to establish free and high-quality WiFI connectivity right before the European Parliament election in 2019. Moreover, I analyze geolocated data about beneficiaries of two major EU funds, European Parliament election results along with register data from polling stations, and a city-wide survey experiment in Denmark. Results provide little to no evidence that European place-based policy impacts on turnout, eurosceptic voting, and attitudes toward European integration. The results challenge popular claims that the EU can strengthen public support through increased spending to its regions.