The product of a research project supported by the Institut d Estudis Autonòmics of the Catalan Regional Government and the BBVA Foundation, this publication examines the territorial impact of Spanish government authority interventions. A large part of the book is devoted to an analysis of territorial spending and tax revenue patterns at different levels of the Government Administration.

Its study of spending policy indicates that Autonomous Regions have made good use of their decentralized powers, and have practiced a marked differentiation in their spending policies to ensure that their goods and services fit adequately with the needs and preferences of citizens. The authors of this study identify a progressive reduction in inter-regional differences as regards the basic per capita financing of the Autonomous Regions within the common regime, although there is still some work that needs doing. The design of autonomous region financing is also seen as clearly improvable, despite its strengths. After analyzing budgetary policies in its opening chapters, the book takes an in-depth look at how these policies affect the territorial distribution of income and economic activity.

It concludes that public sector action has done much to reduce inequalities across Spains regions, eliminating around a third of the difference in per capita income. This significant redistribution effect has its origin exclusively in tax receipts. The book also discusses regional convergence and its determinants, with particular attention to the role of public works investment which has been clearly convergent since the decentralization process began.

Finally, it offers a tentative analysis of the territorial distribution of economic activity, starting from a study of the localization of large companies head offices. This work provides researchers, policymakers and specialized sectors of public opinion with a critical overview of the first two decades of Spains decentralized system.