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

Author

Listed:
  • Attilio Gardini
  • Giuseppe Cavaliere
  • Luca Fanelli

Abstract

We investigate the occurrence of risk sharing among Italian regions with respect to both long run and short run income fluctuations by means of Vector Equilibrium Correction Models (VEqCMs) which allow to test all implications of the theory without preliminary filtering or transformations of data, and without imposing constraints on the homogeneity of preferences across regions. Our estimates over the 1960-1965 period show that preferences are not homogenous across regions and that the evidence in favour of regional risk sharing is more pronounced than commonly highlighted in previous research. Results also show that in Italy risk sharing devices acting through markets or through the welfare state would in principle allow the optimal stabilisation of regional economies, however the effectiveness of such tools is negatively affected by the environment where regions act: risk aversion prevents the mobility of labour force as well as portfolio diversification and thus restricts the full effectiveness of strategies.

Suggested Citation

  • Attilio Gardini & Giuseppe Cavaliere & Luca Fanelli, 2006. "Risk sharing, avversione al rischio e stabilizzazione delle economie regionali in Italia," Quaderni di Dipartimento 0, Department of Statistics, University of Bologna.
    • Handle: RePEc:bot:quadip:3
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    File URL: http://amsacta.cib.unibo.it/archive/00002173/
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    More about this item

    JEL classification:

    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General

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