Loading…
Bailouts in a fiscal federal system: Evidence from Spain
This paper investigates bailouts in the fiscal federal system of Spain. An equation is estimated in which central government grants to regions depend on the regions' issue of debt. The data is for the period 1986–2006. The results reveal partial bailouts. This holds for discretionary and in-pri...
Saved in:
Published in: | European Journal of Political Economy 2011-03, Vol.27 (1), p.154-170 |
---|---|
Main Author: | |
Format: | Article |
Language: | English |
Subjects: | |
Citations: | Items that this one cites Items that cite this one |
Online Access: | Get full text |
Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
Summary: | This paper investigates bailouts in the fiscal federal system of Spain. An equation is estimated in which central government grants to regions depend on the regions' issue of debt. The data is for the period 1986–2006. The results reveal partial bailouts. This holds for discretionary and in-principle non-discretionary grants. Bailouts are greater or more likely when there are limits on the borrowing autonomy of a region, when the region is responsible for providing health care; and when the region has a high proportion of swing voters). |
---|---|
ISSN: | 0176-2680 1873-5703 |
DOI: | 10.1016/j.ejpoleco.2010.06.001 |