Fiscal Federalism and the impact of Intergovernmental Grants:: the European Regional policy in Spain

• Autores: Juan González Alegre
• Localización: XX Encuentro Economía Pública: estado del bienestar. Sostenibilidad y reformas, 2013, ISBN 978-84-695-6945-0, pág. 66
• Idioma: inglés
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• Resumen

  • We su spect that the efficiency of intergovernmental grants is related to the level of fiscal autonomy of the subsidized government. In this paper we construct and estimate a pane l data model capturing the role of fiscal federa lism on the effectiveness of EU Structural Actions in enhancing public exp enditure in selected policy areas . We use data from the seventeen Spanish regions for the period 1993 - 2007.

    Results unambiguously support the hypothesis that the effectiveness of the ERDF decreases with larger fiscal autonom y .

    T he role of the European Social Fund is still under analysis.

    T h ese results c ould reflect the fact that fiscal decentralization in Spain has been focused to larger taxation autonomy without affecting regional income redistribution