RT info:eu-repo/semantics/article T1 The uneasy coexistence of the spanish foral and common regional finance systems T2 La difícil coexistencia de los sistemas foral y común de financiación autonómica A1 Zabalza Martí, Antonio A1 López Laborda, Julio K1 Regional finance K1 Spain K1 Foral system K1 Common system K1 Financiación regional K1 España K1 Sistema foral K1 Sistema común K1 Economía K1 Economics K1 Geografía K1 Geography K1 Sociología K1 Sociology AB This paper develops a model which integrates the foral or cupo system applied to the Basque Country and Navarre, the "common" system applied to the other fifteen Spanish autonomous communities and the central government budget. The model shows that the theoretical cupo it generates is nothing more than an indirect form of measuring the equalising transfer between the central government and the corresponding autonomous jurisdiction. The cupo form per se is completely neutral: the foral jurisdictions operate exactly under the same financial conditions as the non-foral jurisdictions, despite that in the latter case the transfer is directly measured as the difference between expenditure needs and fiscal capacity. In the context of our model, the cause of the foral economic advantage is the particular imputation procedure developed by the cupo law, which clearly biases the scales in favour of the foral and, therefore, against the non-foral communities. An economic advantage of the foral respect to the aggregate of the non-foral communities that, even if only referred to the design of the cupo, we have estimated at 29.8% in the case of the Basque Country and at 28.2% in the case on Navarre. These calculations should be interpreted as a lower bound on the foral advantage.The model has clear implications for reform. PB Asociación Española de Ciencia Regional (AECR) SN 2340-2717 YR 2017 FD 2017 LK http://hdl.handle.net/10017/30200 UL http://hdl.handle.net/10017/30200 LA eng DS MINDS@UW RD 28-mar-2024