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The FCI: reform simulations

Author

Listed:
  • Cubel, María

    () (Universidad de Barcelona)

  • de Gispert, Cristina

    () (Universidad de Barcelona)

Abstract

In this work we explore different scenarios for the reform of the Fondo de Compensación Interterritorial (FCI), which is a conditional grant from the state to the relatively poorer Spanish autonomous communities. To undertake the analysis we define the main elements of that vertical grant (amount, territorial scope and distribution’ criteria) and evaluate the results corresponding to each scenario taking the year 2007 as baseline. The motivation for the reform is related to the current revision of the regional financing system and the reduction of the EU funds for the period 2007-2013. Consequently, to redefine and promote the FCI as an instrument of regional policy, related to the objectives of development and convergence, is a convenient alternative.

Suggested Citation

  • Cubel, María & de Gispert, Cristina, 2010. "The FCI: reform simulations," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 17, pages 141-162.
  • Handle: RePEc:ris:invreg:0074
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    More about this item

    Keywords

    Intergovernmental grants; Local finance; Regional development policy;

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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