Risk Sharing and Redistribution in a Federal System with Population Mobility
AbstractThis paper considers the implications of population mobility for risk sharing among individuals and among regions of a federation. There is an important interaction between risk sharing and interregional redistribution which precludes the regional authorities from fully exploiting gains from interregional risk sharing when population mobility is imperfect. However, the conditions characterising risk sharing arrangements among the individuals within each region in the Nash equilibrium correspond to those of the central authority. Finally, all gains from interregional risk sharing are fully exploited with perfect mobility.
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Bibliographic InfoPaper provided by York University, Department of Economics in its series Working Papers with number 1996_03.
Length: 19 pages
Date of creation: Mar 1996
Date of revision:
Risk Sharing; Federation; Population Mobility; Efficiency;
Find related papers by JEL classification:
- H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
- E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
- F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
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