In the absence of an equalization grant system, like we justify occurs in Spain at the local level of government, those governments that bear a decrease in their level of tax capacity will have to adjust their budget either by increasing their level of tax effort, by reducing their level of...

By means of a dynamic panel data analysis, and using a database from municipalities of the province of Barcelona (1993-99), we describe their process of fiscal adjustment to a shock in tax capacity. About 25% of the shock is internalized through an increase in tax effort, 35% through a reduction...

We analyse the redistributive power of the Spanish central government budget to diminish regional disparities in per capita income in the 1991-1996 period. It firstly makes a brief overview of the most relevant empirical studies carried out on this subject, analysing their methodologies and...