Political knowledge and attitudes towards centralization in Europe

We analyse the impact of political knowledge on the attitudes of European citizens towards the possible distribution of competences between the European Union (EU) and the Member States. Our hypothesis is that citizens who are more informed about the EU will support the centralisation of competences in some policy areas according to the lines predicted by the fiscal federalism literature. We test our hypothesis using micro data from the Eurobarometer survey, taking into account the endogeneity of political knowledge. We find that more knowledgeable citizens are more willing to favour centralisation to the EU in areas where public intervention by individual Member States causes externalities, where economies of scale in the provision of public goods are important and where redistributive and stabilisation functions have to be pursued.