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Fiscal Flows and Financial Markets: To What Extent Do They Provide Risk Sharing within Sweden?

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  • Linda Andersson
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    Abstract

    Andersson L. Fiscal flows and financial markets: to what extent do they provide risk sharing within Sweden?, Regional Studies. The objective of this paper is to analyse the amount of risk sharing that takes place between regions in Sweden. It is found that the capital market is the largest source of risk sharing of an exogenous change in gross regional product in Sweden. Still, roughly 20% of a change in regional output is smoothed among the regions through the fiscal system. There is also some evidence that there are regional differences in the sense that regions located in the south rely more on the capital market as a source of insurance against shocks in output, while the tax and transfer systems provide a larger extent of risk sharing for regions located in the north. [image omitted] Andersson L. Flux fiscaux et marches financiers: dans quelle mesure assurent-ils le partage de risques en Suede?, Regional Studies. L'objet de cette communication est d'analyser l'importance du partage de risques entre regions suedoises. Nous observons que le marche financier est la plus importante source de partage de risques d'un echange exogene du produit regional brut en Suede. Et pourtant, environ 20% d'un changement de la production regionale sont lisses entre les regions via le systeme fiscal. Il existe egalement des elements probants de differences regionales dans le sens ou les regions du sud dependent davantage des marches financiers comme source d'assurance contre les perturbations affectant la production alors que les systemes fiscaux et de transfert instillent une plus grande dose de partage de risques dans les regions du nord. Partage de risques Impots Transferts Relations intergouvernementales Marche financier Andersson L. Fiskalstrome und Finanzmarkte: In welchem Ausmass ermoglichen sie in Schweden eine Risikoteilung?, Regional Studies. In diesem Beitrag wird der Umfang der Risikoteilung zwischen den Regionen von Schweden analysiert. Wir stellen fest, dass der Kapitalmarkt die grosste Quelle fur die Teilung des Risikos einer exogenen Veranderung des Bruttoregionalprodukts in Schweden darstellt. Dennoch werden weiterhin etwa 20 Prozent von Veranderungen der Regionalleistung uber das Fiskalsystem innerhalb der Regionen ausgeglichen. Ebenso liegen Anzeichen fur regionale Unterschiede in dem Sinn vor, dass sich die Regionen im Suden starker auf den Kapitalmarkt als Quelle der Absicherung gegen Storungen in der Leistung verlassen, wahrend in den nordlichen Regionen die Steuer- und Transfersysteme einen grosseren Teil der Risikoteilung ubernehmen. Risikoteilung Steuern Transfers Beziehungen zwischen Regierungen Kapitalmarkt Andersson L. Flujos fiscales y mercados financieros: �En que medida ofrecen riesgo compartido en Suecia?, Regional Studies. El objetivo de este articulo es analizar la cantidad de riesgo compartido que existe en las regiones suecas. Observamos que en Suecia el mercado capital es la mayor fuente de riesgo compartido de un cambio exogeno en el producto regional bruto. Aun asi, aproximadamente el 20 por ciento de un cambio en la produccion regional se atenua entre las regiones a traves del sistema fiscal. Tambien hay pruebas de que existen diferencias regionales puesto que las regiones ubicadas en el sur dependen en mayor medida del mercado capital como fuente de seguro contra choques en la produccion mientras que para las regiones del norte los sistemas impositivos y de transferencias son una fuente mas importante de riesgo compartido. Riesgo compartido Impuestos Transferencias Relaciones intergubernamentales Mercado capital

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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Regional Studies.

    Volume (Year): 42 (2008)
    Issue (Month): 7 ()
    Pages: 1003-1011

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    Handle: RePEc:taf:regstd:v:42:y:2008:i:7:p:1003-1011

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    Related research

    Keywords: Risk sharing; Taxes; Transfers; Intergovernmental relations; Capital market;

    References

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    1. Sebnem Kalemli-Ozcan & Bent E. Sorensen & Oved Yosha, 2000. "Risk sharing and industrial specialization ; regional and international evidence," Research Working Paper RWP 00-06, Federal Reserve Bank of Kansas City.
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    4. von Hagen, Jürgen, 1998. "Fiscal policy and intranational risk-sharing," ZEI Working Papers B 13-1998, ZEI - Center for European Integration Studies, University of Bonn.
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    11. Melitz, Jacques & Zumer, Frederic, 2002. "Regional redistribution and stabilization by the center in Canada, France, the UK and the US:: A reassessment and new tests," Journal of Public Economics, Elsevier, vol. 86(2), pages 263-286, November.
    12. Buettner, Thiess, 2002. "Fiscal federalism and interstate risk sharing: empirical evidence from Germany," Economics Letters, Elsevier, vol. 74(2), pages 195-202, January.
    13. Decressin, Jorg, 2002. "Regional income redistribution and risk sharing: how does Italy compare in Europe?," Journal of Public Economics, Elsevier, vol. 86(2), pages 287-306, November.
    14. Hepp, Ralf & von Hagen, Jürgen, 2001. "Regional Risksharing and Redistribution in the German Federation," CEPR Discussion Papers 2662, C.E.P.R. Discussion Papers.
    15. Asdrubali, Pierfederico & Sorensen, Bent E & Yosha, Oved, 1996. "Channels of Interstate Risk Sharing: United States 1963-1990," The Quarterly Journal of Economics, MIT Press, vol. 111(4), pages 1081-1110, November.
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