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How Do Countries Smooth Regional Disturbances? Risksharing in Spain: 1973-1993

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Author Info

  • Enrique Alberola
  • Pierfederico Asdrubali

Abstract

We use a simple analytical framework to study how idiosyncratic production shocks are smoothed through risksharing across Spanish provinces. By analyzing how production in the average province is successively smoothed until it is used as consumption, we find that half of the shocks have been smoothed in the period 1973-1993 and that this proportion is even higher in the last decade (1983-1993).

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Bibliographic Info

Paper provided by Banco de España in its series Banco de España Working Papers with number 9724.

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Length: 36 pages
Date of creation: 1997
Date of revision:
Handle: RePEc:bde:wpaper:9724

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Keywords: RISK ; REGIONAL ECONOMY;

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