Countries' governance institutions to a varying degree support stakeholders to invest in relationship-specific assets. The function of governance institutions is to strengthen the commitment of parties to keep to an initial agreement. Thus, international differences in governance institutions...

This paper discusses the assessment of subsidiarity in the European Union from a broad fiscal federalism perspective. It incorporates recent insights from political economy analyses of fiscal federalism to arrive at a list of issues that need to be taken into account when considering whether...

The Lisbon strategy could reinvigorate Europe's economy and boost employment. In 2000 the European leaders agreed to stimulate economic growth and employment and make Europe's economy the most competitive in the world. Read also the accompanying <a href="http://www.cpb.nl/node/13365">press release</a>. If Europe would really reach the...

The budget of the European Union raises much commotion. Many member states anxiously guard their net payment positions: don't they pay too much for the EU compared to what they receive from the EU? Read also the accompanying <a href="http://www.cpb.nl/node/12964">press release</a>. Yet, from an economic perspective the subsidiarity...

'Europe' is becoming more relevant than in the past. In the last twenty to thirty years, the European Union has moved towards policy domains which have been exclusively the competence of individual Member States. Some examples are monetary and budgetary policies (Stability and Growth pact),...