Decentralization and Living Conditions in the EU

Abstract

This paper investigates the effects of decentralization on living conditions in core cities in the European Union. It uses data from the Urban Audit to investigate whether the level of local expenditures relative to central government expenditures has an impact on the subjective appreciation of local living conditions as measured in the Urban Audit Survey in 75 cities as well as the actual quality of local living conditions as measured by comparative crime, traffic, urban space and health statistics as measured in 560 cities. It investigates the impact of decentralization on these living conditions controlling for background factors such as population density, median income of households and unemployment in the cities. The analyses show that decentralization does have an added value in explaining citizens’ satisfaction with regard to public and green space, public transport, health care, reduces actual crime and increases feelings of safety.