The FCI: reform simulations

Maria Cubel and Cristina de Gispert ()
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Cristina de Gispert: Universidad de Barcelona

INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, 2010, issue 17, 141-162

Abstract: In this work we explore different scenarios for the reform of the Fondo de Compensación Interterritorial (FCI), which is a conditional grant from the state to the relatively poorer Spanish autonomous communities. To undertake the analysis we define the main elements of that vertical grant (amount, territorial scope and distribution’ criteria) and evaluate the results corresponding to each scenario taking the year 2007 as baseline. The motivation for the reform is related to the current revision of the regional financing system and the reduction of the EU funds for the period 2007-2013. Consequently, to redefine and promote the FCI as an instrument of regional policy, related to the objectives of development and convergence, is a convenient alternative.

Keywords: Intergovernmental grants; Local finance; Regional development policy (search for similar items in EconPapers)
JEL-codes: H54 H77 R58 (search for similar items in EconPapers)
Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:ris:invreg:0074

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