Instituto Valenciano de Investigaciones Económicas
Research Areas
IvieLAB - Regional divergence, fiscal co-responsibility and regional financial balances

IvieLAB - Regional divergence, fiscal co-responsibility and regional financial balances

Project start date: 2022
Year of publication: 2022
Funding institution: Generalitat Valenciana

The project will consider the balances/imbalances derived from the relationship between under-funding and economic growth and the evolution of tax collection prior to the 2008 crisis and its subsequent collapse, considering the following aspects of the problem:

  • analysis of the differences in regional patterns of convergence and growth prior to and after the 2008 crisis
  • relationship with demographic and economic dynamics
  • connection-correlation between the favorable pre-crisis prospects and the unfavorable regional funding distribution in 2002 and 2009
  • analysis of the evolution of the normative and effective tax collection in the different regions prior to and after the 2008 crisis and its causes
  • analysis of the elasticity of tax collection with respect to the GDP of the different assigned taxes
  • prospects for the long-term evolution of the collection of assigned taxes as a function of expected economic growth, their composition and the elasticities of collection with respect to economic growth
  • possible fiscal and redistributive compensation mechanisms: advantages and disadvantages in terms of reinforcing or slowing down the country’s overall economic growth
  • the advisability of contemplating a special regime, federal district, in the financial, administrative and political spheres, which would prevent tax competition with the other territories.

RESEARCH TEAM

EDITING, DESIGN AND DOCUMENTATION