Abstract
The Report of the Committee of Experts for the Review of the Local Financing System (2017) proposes replacing the current dual system of transfers with a single equalization system for all Spanish municipalities. The objective of this work is to discuss the suitability of the proposal and compare it with other less demanding alternatives based on distributive transfer formulas. To do this, we estimate the financial cost of each of these alternatives and of their distributive effects among municipalities according to their size and the type of system to which they belong.
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