IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

The uneasy coexistence of the Spanish foral and common regional finance systems

Listed author(s):
  • Zabalza, Antoni


    (University of Valencia)

  • López-Laborda, Julio


    (University of Zaragoza)

This paper develops a model which integrates the foral or cupo system applied to the Basque Country and Navarre, the common system applied to the other fifteen Spanish autonomous communities and the central government budget. The model shows that the theoretical cupo it generates is nothing more than an indirect form of measuring the equalising transfer between the central government and the corresponding autonomous jurisdiction. The cupo form per se is completely neutral: the foral jurisdictions operate exactly under the same financial conditions as the non-foral jurisdictions, despite that in the latter case the transfer is directly measured as the difference between expenditure needs and fiscal capacity. In the context of our model, the cause of the foral economic advantage is the particular imputation procedure developed by the cupo law, which clearly biases the scales in favour of the foral and, therefore, against the non-foral communities. An economic advantage of the foral respect to the aggregate of the non-foral communities that, even if only referred to the design of the cupo, we have estimated at 29.8% in the case of the Basque Country and at 28.2% in the case on Navarre. These calculations should be interpreted as a lower bound on the foral advantage. The model has clear implications for reform.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
File Function: Full text
Download Restriction: no

Article provided by Asociación Española de Ciencia Regional in its journal INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH.

Volume (Year): (2017)
Issue (Month): 37 ()
Pages: 119-152

in new window

Handle: RePEc:ris:invreg:0342
Contact details of provider: Postal:
C/ Viladomat, 321 entresuelo - 08029 Barcelona, Teléfono y Fax: + 34 933101112, E-mail:, Web:, Web Investigaciones Regionales:

Phone: +34 93 310 11 12
Fax: +34 93 310 11 12
Web page:

More information through EDIRC

References listed on IDEAS
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.:

in new window

  1. Antoni Zabalza & Julio López-Laborda, 2011. "The new Spanish system of intergovernmental transfers," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 18(6), pages 750-786, December.
  2. Antoni Zabalza, 2012. "Una nota sobre el ajuste del IVA en el sistema foral de financiación: Marco analítico y propuesta de un nuevo mecanismo," Hacienda Pública Española, IEF, vol. 202(3), pages 105-123, September.
  3. Carlos Monasterio Escudero, 2010. "Federalismo fiscal y sistema foral. ¿Un concierto desafinado?," Hacienda Pública Española, IEF, vol. 192(1), pages 59-103, March.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:ris:invreg:0342. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Julieta Llungo-Ortíz)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.