RT Journal Article
T1 Should fiscal equalisation and regional policy goals and tools be disentangled?
A1 López Laborda, Julio
A1 Montes Nebreda, Andoni
A1 Onrubia Fernández, Jorge
AB 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.
PB Taylor & Francis
SN 0034-3404
YR 2025
FD 2025
LK https://hdl.handle.net/20.500.14352/131001
UL https://hdl.handle.net/20.500.14352/131001
LA eng
NO López-Laborda, J., Montes-Nebreda, A., & Onrubia, J. (2025). Should fiscal equalisation and regional policy goals and tools be disentangled? Regional Studies, 59(1). https://doi.org/10.1080/00343404.2024.2371146
DS Docta Complutense
RD 5 feb 2026