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Regional Financing in Germany and Spain: Comparative Reform Perspectives

Author

Listed:
  • Angel De la Fuente
  • Christian Kastrop
  • Michael Thöne

Abstract

Reforms of regional financing are due soon or even overdue in Spain and in Germany. This research paper compares the systems of regional financing in both countries, describes their financial outcomes, benchmarks them against criteria taken from the modern theory of fiscal federalism and extracts some lessons for reform from this endeavour.

Suggested Citation

  • Angel De la Fuente & Christian Kastrop & Michael Thöne, 2016. "Regional Financing in Germany and Spain: Comparative Reform Perspectives," Working Papers 16/04, BBVA Bank, Economic Research Department.
    • Handle: RePEc:bbv:wpaper:1604
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    References listed on IDEAS

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    1. repec:wbk:wbpubs:7171 is not listed on IDEAS
    2. Bernd Huber & Christian Baretti & Karl Lichtblau, 2000. "A Tax on Tax Revenue. The Incentive Effects of Equalizing Transfers: Evidence from Germany," CESifo Working Paper Series 333, CESifo.
    3. Timm Bönke & Beate Jochimsen & Carsten Schröder, 2013. "Fiscal Federalism and Tax Administration: Evidence from Germany," Discussion Papers of DIW Berlin 1307, DIW Berlin, German Institute for Economic Research.
    4. Hansjörg Blöchliger & Maurice Nettley, 2015. "Sub-central Tax Autonomy: 2011 Update," OECD Working Papers on Fiscal Federalism 20, OECD Publishing.
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    Citations

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    Cited by:

    1. Emilio Calvo, 2021. "Redistribution of tax resources: a cooperative game theory approach," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 12(4), pages 633-686, December.
    2. Angel de la Fuente, 2019. "Financiación autonómica: una breve introducción," Studies on the Spanish Economy eee2019-07, FEDEA.
    3. Michael Thöne, 2017. "Nachtrag: Reform der Finanzbeziehungen zwischen Bund und Ländern: Fairer Kompromiss oder Setzen neuer Fehlanreize?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 70(01), pages 17-23, January.
    4. Diego Mart nez-L pez, 2018. "Vertical Externalities Revisited: New Results with Public Inputs and Unit Taxation," Hacienda Pública Española / Review of Public Economics, IEF, vol. 225(2), pages 11-30, June.
    5. Juan S. Mora‐Sanguinetti & Rok Spruk, 2023. "Economic effects of recent experiences of federalism: Analysis of the regionalization process in Spain," Journal of Regional Science, Wiley Blackwell, vol. 63(1), pages 30-63, January.
    6. Carmen Marín-González & Diego Martínez-López, 2024. "Fiscal stabilisation, debt sustainability and public spending in subnational governments. The case of the Spanish regions," Studies on the Spanish Economy eee2024-02, FEDEA.

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    Keywords

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    JEL classification:

    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue

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