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Social and Behavioral Sciences Commons

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Economics

ICEPP Working Papers

Series

2011

Spanish system of intergovernmental transfers; equalising transfers

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Full-Text Articles in Social and Behavioral Sciences

The New Spanish System Of Intergovernmental Transfers, Antoni Zabalza, Julio López-Laborda Jan 2011

The New Spanish System Of Intergovernmental Transfers, Antoni Zabalza, Julio López-Laborda

ICEPP Working Papers

This article analyses the workings of the new Spanish system of intergovernmental transfers, which has been in operation since 2009, and compares its expected effects with those of the model that was in force until 2008. The paper considers the effects of the new model at the base year of application and the growth over time of these effects. On the positive side, the reform has significantly reduced the dispersion of the distribution of resources per unit of need. On the negative side, the system has become very complex and obscure regarding the distribution criteria it uses; also, of the …