Fiscal Federalism and the impact of Intergovernmental Grants:the European Regional policy in Spain
Publisher: Universidad de Sevilla
ISBN: 978-84-695-6945-0
Year of publication: 2013
Pages: 66
Congress: Encuentro de Economía Pública (20. 2013. Sevilla)
Type: Conference paper
Abstract
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