We identify a number of elements of the current Spanish system of regional financing that do not conform satisfactorily to the principles of equity, autonomy and efficiency that should inspire its design. Our main conclusion is that although the system presents a series of shortcomings that...

This paper analyzes the dynamic properties of the current regional financing system and compares them with those of its predecessor, with special attention to the sensitivity of each to the growth of income and population and to the evolution of the age structure of the latter.