The authors quantify the fungibility effect or diversion of resources towards purposes other than investment, by regions receiving conditional capital transfers. To identify this behaviour, they have taken different empirical approaches with frontier techniques that let them quantify whether the...

This work examines in depth the hypotheses explaining the tax capacity of regional governments, also determining their tax effort and explanatory factors. The study is done for the Spanish regions, using different techniques which have rarely been applied in this area. The results show that...