Fiscal Deficit Sustainability of the Spanish Regions

Abstract

Fiscal deficit sustainability of the Spanish regions, Regional Studies. The fiscal deficit of the Spanish Autonomous Communities is investigated using non-stationary panel data analysis. The paper considers the two main approaches in the literature, first assessing whether there is a long-run relationship between the revenues and expenditures of the Autonomous Communities, and second focusing on the use of fiscal rules. The paper shows that it is possible to relate these approaches in a unified framework.