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Regional Income Redistribuiton and Risk Sharing

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  • Jörg Decressin
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    Abstract

    This paper investigates income redistribution and risk sharing among Italy’s regions and the implications for public policy. Using a richer data set than in previous works, this study allows for an assessment of public consumption’s and investment’s roles. The findings suggest that Italy’s fiscal system provides interregional redistribution at 30–35 percent and risk sharing at 20–30 percent of GDP, mainly through public consumption. Compared with results in the literature for other European countries, there appears to be less redistribution and risk sharing in Italy through its welfare and tax systems because of their different structures.

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    Bibliographic Info

    Paper provided by International Monetary Fund in its series IMF Working Papers with number 99/123.

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    Length: 34
    Date of creation: 01 Sep 1999
    Date of revision:
    Handle: RePEc:imf:imfwpa:99/123

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    Cited by:
    1. Shankar, Raja & Shah, Anwar, 2003. "Bridging the Economic Divide Within Countries: A Scorecard on the Performance of Regional Policies in Reducing Regional Income Disparities," World Development, Elsevier, vol. 31(8), pages 1421-1441, August.

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