2026-06-02T15:06:41Zhttps://docta.ucm.es/rest/oai/requestoai:docta.ucm.es:20.500.14352/1310012026-01-27T00:51:10Zcom_20.500.14352_14col_20.500.14352_17
Should fiscal equalisation and regional policy goals and tools be disentangled?
López Laborda, Julio
Montes Nebreda, Andoni
Onrubia Fernández, Jorge
H10
H7
H73
H77
R5
Regional convergence
Fiscal equalisation
Regional policy
Decentralisation
Intergovernmental transfers
Ciencias Sociales
53 Ciencias Económicas
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.
Depto. de Economía Aplicada, Pública y Política
Fac. de Ciencias Económicas y Empresariales
FALSE
pub
2026-01-26T13:17:12Z
2026-01-26T13:17:12Z
2025
journal article
AO
https://hdl.handle.net/20.500.14352/131001
0034-3404
10.1080/00343404.2024.2371146
1360-0591
eng
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
open access
application/pdf
Taylor & Francis