Resumen de Non-institutional federalism in Spain

Joan Rosselló Villalonga

• This paper introduces two alternative approaches in the analysis of the process of decentralization in Spain. Both approaches are complementary to those contributions, related to Spain, that develop the traditional approach of Fiscal Federalism. We deal with the role of institutions in the efficient provision of public expenditure in a decentralized set up. In the first part of the paper we introduce a very simple static model with externalities in which the normative recommendation of decentralization does not guarantee the efficient provision of public goods. The reason is that regional governments behave as rent-seekers and they behave opportunistically. The adequate design of Federal Institutions might allow reducing such inefficiencies.

  In the second part we try to identify the political characteristics of the Spanish regime that may explain the lack of institutional mechanisms of cooperationcoordination between governments.