“…Second, the paper adds to the related literature studying the politics behind different financing instruments of the EU (for general reviews, see, Alesina et al 2005, Baldwin andWyplosz 2012). In particular, studies find that political factors, such as voting and proposal powers of the Member States in the EU, but also other international organizations, systematically affect the allocation of the EU Budget (see, among others, Aksoy 2010, 2012, Bachtler and Mendez 2007, Bodenstein and Kemmerling 2012, Gehring and Schneider 2018, Mikulaschek 2018, Schneider 2013). 6 Our contribution to this literature is to document the existence of home-bias at the regional level in addition to the previously found biases at the national level.…”