Fiscal Autonomy and Fiscal Sustainability: Subnational Taxation and Public Indebtedness in Contemporary Spain

Arbeitspapier

This study assesses fiscal sustainability in contemporary Spain at the regional level. Spain consists of 17 autonomous regions, two fiscal regimes differing in taxing autonomy, and two path-dependent types of communities with more and less legislatively recognized autonomy. Three of the 17 autonomies do neither have any fiscal power over ceded taxes nor the option to grant tax credits. This structure allows us to apply panel unit root and stationarity tests to sub-samples of autonomies to check for fiscal sustainability in the sense of adhering to an intertemporal budget constraint. Only for the clear-cut fiscally autonomous regimes of Navarro and Basque Country, endowed with ample statutory privileges in the collection of taxes, time series properties accord with the notion of sustainability based on expected-value budget constraints.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 4726

Classification and Topics

• Classification: Wirtschaft ; National Budget, Deficit, and Debt: General ; State and Local Taxation, Subsidies, and Revenue ; Single Equation Models; Single Variables: Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes ; Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models
• Subject: decentralization ; public debt ; primary surplus ; taxation ; unit root

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Larin, Benjamin ; Süssmuth, Bernd
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2014

Further information

• Handle: http://hdl.handle.net/10419/96913
• Last update: 10.03.2025, 11:42 AM CET