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Risk Sharing, avversione al rischio e stabilizzazione delle economie regionali in Italia

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  • Attilio Gardini

    ()
    (Università di Bologna)

  • Giuseppe Cavaliere

    ()
    (Università di Bologna)

  • Luca Fanelli

    ()
    (Università di Bologna)

Abstract

We investigate the extent of risk sharing among the Italian regions with respect to both longrun and short-run income fluctuations. We use Vector Equilibrium Correction Models (VEqCMs) with the aim of testing all implications of the theory without preliminar data filtering, and without imposing constraints on the homogeneity of preferences across regions. Our estimates over the 1960-1995 period show that preferences are not homogeneous across regions and that the evidence in favour of regional risk sharing is more pronounced than commonly emphasized in previous research, although for some regions a high degree of risk aversion restricts the full effectiveness of the stabilisation strategies.

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Article provided by SIPI Spa in its journal Rivista di Politica Economica.

Volume (Year): 95 (2005)
Issue (Month): 3 (May-June)
Pages: 219-266

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Handle: RePEc:rpo:ripoec:v:95:y:2005:i:3:p:219-266

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