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Macroeconomic Effects of Catalan Fiscal Deficit with the Spanish State (2002-2010) (?)

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Jordi Pons ()
Ramon Tremosa-i-Balcells ()

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Abstract

Catalonia yearly contributes to the Spanish State solidarity interterritorial redistribution funds: in 2001 a 8’9% of Catalan GDP, considering the difference between what the Spanish State collect in taxes and what it expends and invests in Catalonia. Because of these yearly fiscal deficit with Spain, Catalonia is loosing its capacity to grow faster and the opportunity to converge more quickly with the EU core regions. In this paper, using a VAR model it is simulated which could be the Catalan GDP growth in the period 2002-2010, if there were a reduction of the yearly Catalan contribution to the Spanish State: the results obtained show that Catalan GDP would easily reach at 2010 the GDP per capita level of the most developed EU regions.

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Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa03p128.

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Date of creation: Aug 2003
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Handle: RePEc:wiw:wiwrsa:ersa03p128

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Alberto Abadie & Javier Gardeazabal, 2001. "The Economic Costs of Conflict: A Case-Control Study for the Basque Country," NBER Working Papers 8478, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  2. William D. Nordhaus, 2002. "The Economic Consequences of a War with Iraq," Cowles Foundation Discussion Papers 1387, Cowles Foundation, Yale University. [Downloadable!]
  3. Joan Costa-i-Font & Ramon Tremosa-i-Balcells, . "Spanish Regions and the Macroeconomic Benefits of European Monetary Union (EMU)," Studies on the Spanish Economy 89, FEDEA. [Downloadable!]
  4. Joan Costa-i-Font & Ramon Tremosa-i-Balcells, 2003. "Spanish Regions and the Macroeconomic Benefits of the European Monetary Union," Regional Studies, Taylor and Francis Journals, vol. 37(3), pages 217-226, May. [Downloadable!] (restricted)
  5. Stefan Mittnik & Thorsten Neumann, 2001. "Dynamic effects of public investment: Vector autoregressive evidence from six industrialized countries," Empirical Economics, Springer, vol. 26(2), pages 429-446. [Downloadable!] (restricted)
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