In this paper we test the hypothesis that municipalities aligned with upper-tier grantor governments (i.e., controlled by the same party) will receive more grants than those that are unaligned. We use a rich Spanish database, which provides information on grants received by nearly 900...

We study the effects of the availability of information about corruption scandals on electoral outcomes. The paper uses a novel and rich database with information on corruption scandals that affected Spanish local governments during the period 1996–2009. The database includes information about...

The aim of this article is to analyse whether Spanish municipalities adjust in response to budget shocks and (if so) which elements of the budget they are more likely to adjust. The methodology we use to answer these questions is a Vector Error Correction Model (VECM), estimated with data from a...

This paper investigates bailouts in the fiscal federal system of Spain. An equation is estimated in which central government grants to regions depend on the regions' issue of debt. The data is for the period 1986-2006. The results reveal partial bailouts. This holds for discretionary and...