Should fiscal equalisation and regional policy goals and tools be disentangled?
We exploit the mixture of policy goals and instruments of the Spanish Regional Funding System (RFS) to test whether equalisation transfers have an impact on regional convergence. Using FE and 2SLS-IV models and data for 15 regions for the 2002-2018 period, we find that both fiscal equalisation and r...
| Autores: | , , |
|---|---|
| Tipo de documento: | artigo |
| Data de publicação: | 2025 |
| País: | España |
| Recursos: | Universidad Complutense de Madrid (UCM) |
| Repositório: | Docta Complutense |
| Idioma: | inglês |
| OAI Identifier: | oai:docta.ucm.es:20.500.14352/131001 |
| Acesso em linha: | https://hdl.handle.net/20.500.14352/131001 |
| Access Level: | Acceso aberto |
| Palavra-chave: | H10 H7 H73 H77 R5 Regional convergence Fiscal equalisation Regional policy Decentralisation Intergovernmental transfers Ciencias Sociales 53 Ciencias Económicas |
| Resumo: | We exploit the mixture of policy goals and instruments of the Spanish Regional Funding System (RFS) to test whether equalisation transfers have an impact on regional convergence. Using FE and 2SLS-IV models and data for 15 regions for the 2002-2018 period, we find that both fiscal equalisation and regional transfers show a significant concave convergence promoting effect, which is larger for regional transfers. However, excess/deficit funding caused by overlapping tools and objectives in the RFS does not have a significant relationship with regional convergence. These results are in line with the Tinbergen rule, since it is more cost-effective to promote regional convergence through regional policy funds. |
|---|