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

Roberto Fernández Llera , María Angeles García Valiñas

• The main objective of this paper consists of analyzing regional public sector enterprises (PSEs) inSpain. We provide a general overview of Autonomous Communities "(ACs) financial resources inthe context of the Stability and Growth Pact and Budgetary Stability Act. From 2002, such regula-tion imposes stringent constraints on ACs" indebtedness. We investigate the PSEs as an alternativeto traditional financing mechanisms. Descriptive and econometric analyses confirm our expectationsrelated to this "shift effect". In a dynamic context, a significant link between public debt and the cre-ation of PSEs debt shows that ACs used public enterprises to avoid stringent financial rules.