Journal Article
No. 2019-31 | May 17, 2019
Regional tax effort in Spain


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 these jurisdictions have exercised their tax autonomy responsibly, in response to different budget and demographic factors and to the economic cycle. Also, an asymmetrical tax behaviour linked to income is observed: some regions have practically exhausted the possibilities of current sub-central taxes, while others still have ample fiscal space.

Data Set

JEL Classification:

H71, H2, C23, C51


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Cite As

Anabel Zárate-Marco and Jaime Vallés-Giménez (2019). Regional tax effort in Spain. Economics: The Open-Access, Open-Assessment E-Journal, 13 (2019-31): 1–32.

Comments and Questions

Anonymous - article review
July 01, 2019 - 11:57

And, then, how do you account for the attached Figure?
The pdf of the diagram is attached. Both, gdp growth and debt-to-gdp, have a declining trend.

Anabel Zárate-Marco - reply to anonymous
July 03, 2019 - 10:23

The data of your figure analyze a period of economic recovery, after our study.
We can not see the source and the specific description of your data, but they seem to reflect the evolution of the consolidated aggregate of the different levels of the Spanish public administration, while we only ...[more]

... analyze the situation of the regional governments.
Finally, the increase in debt was caused by the collapse of tax revenues caused by the crisis, together with the increase in spending caused by automatic stabilizers, so that the economic recovery has allowed a reduction in debt