Equalization transfers and capital expenditure: reconsidering the assessment of expenditure needs and financial capacity of capital nature. An application to the Spanish regional case. (Versión provisional)

• Autores: Ana Herrero Alcalde, Jorge Martínez Vázquez, Encarnación Murillo García
• Localización: XVII Encuentro de Economía Pública: políticas públicas ante la crisis, 2010, pág. 56
• Idioma: inglés
• Texto completo no disponible (Saber más ...)
• Resumen

  • This paper analyzes the role of capital equalization transfers within the subcentral governments financial system. This is an area of fiscal federalism that has not been studied in depth and the aim of the paper is to study the singular characteristics of capital expenditure that require to give this kind of transfer a different treatment from the typical recurrent equalization grant. We suggest the introduction of several adjustments in the distribution of the transfer. In the context of the measurement of regional financial capacity, we propose to include the potential regional endebtment.

    Besides, we suggest to take into account the differences in the devolved capital stock when distributing capital equalization transfers. In order to detect the main advantages and shortcomings of the proposed methodology, we apply it to the Spanish regional level of government