We present a novel approach for analyzing the effects of EU cohesion policy on local economic activity. For all municipalities in the border area of the Czech Republic, Germany and Poland, we collect project-level data on EU funding in the period between 2007 and 2013. Using night light emission...

We analyze the effects of a large place-based policy, subsidizing up to 50% of the investment costs of manufacturing firms in East Germany. We show that a one-percentage-point decrease in the subsidy rate leads to a 1% decrease in manufacturing employment. We document important local spillovers...

This paper explores avenues for cross-fertilisation between the mission-oriented approach and Cohesion Policy. It argues in favour of mutual policy learning between the two to address some of their respective shortcomings: Cohesion Policy is facing a gradual erosion of its identity, whereas the...