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The Role of Regional Public Enterprises in Spain: Room for a Shadow Government?

Author

Listed:
  • Roberto Fernández Llera

    (Universidad de Oviedo)

  • María A. García Valiñas

    (Universidad de Oviedo)

Abstract

The main objective of this paper consists of analyzing regional public sector enterprises (PSEs) in Spain. We provide a general overview of Autonomous Communities’ (ACs) financial resources in the context of the Stability and Growth Pact and Budgetary Stability Act. From 2002, such regulation imposes stringent constraints on ACs’ indebtedness. We investigate the PSEs as an alternative to traditional financing mechanisms. Descriptive and econometric analyses confirm our expectations related to this ‘shift effect’. In a dynamic context, a significant link between public debt and the creation of PSEs debt shows that ACs used public enterprises to avoid stringent financial rules.

Suggested Citation

  • Roberto Fernández Llera & María A. García Valiñas, 2013. "The Role of Regional Public Enterprises in Spain: Room for a Shadow Government?," Hacienda Pública Española / Review of Public Economics, IEF, vol. 205(2), pages 9-31, June.
    • Handle: RePEc:hpe:journl:y:2013:v:205:i:2:p:9-31
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    1. María A. García-Valiñas, 2018. "Spain," Post-Print hal-03191536, HAL.
    2. Laura Deruytter & David Bassens, 2021. "The Extended Local State under Financialized Capitalism: Institutional Bricolage and the Use of Intermunicipal Companies to Manage Financial Pressure," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 45(2), pages 232-248, March.

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    More about this item

    Keywords

    Deficit; debt; public sector enterprises; regional governments; Spain;
    All these keywords.

    JEL classification:

    • H74 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Borrowing
    • L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises; Public-Private Enterprises

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