Two hats, one purse: does holding a dual mandate affect the attraction of grants?

This study examines whether the allocation of intergovernmental grants is associated with the presence of Members of Parliament (MPs), including those holding dual mandates at the local level as mayors, aldermen, or councillors. Focusing on the Flemish region of Belgium, we analyse panel data covering 290 municipalities and 3.758 observations from 2005 to 2017. The findings indicate a consistent pattern of hometown bias: municipalities with a resident MP tend to receive higher levels of grants. At the same time, this association is not uniform across MPs. The hometown effect is largely driven by MPs affiliated with the governing majority, and by those holding dual mandates, whereas single mandate MPs are not systematically associated with higher grant allocation. Further differentiation reveals that this pattern is primarily attributable to MPs who also serve as mayors, while evidence for aldermen and councillors is weaker and less consistent.