López Laborda, JulioMontes Nebreda, AndoniOnrubia Fernández, Jorge2026-01-262026-01-262025López-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/10.1080/00343404.2024.23711460034-340410.1080/00343404.2024.2371146https://hdl.handle.net/20.500.14352/131001We 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.engjournal article1360-0591https://doi.org/10.1080/00343404.2024.2371146open accessH10H7H73H77R5Regional convergenceFiscal equalisationRegional policyDecentralisationIntergovernmental transfersCiencias Sociales53 Ciencias Económicas