Interregional risk sharing and fiscal redistribution in unified Germany
This article provides empirical evidence of interregional risk sharing in unified Germany. The focus is on two related questions. First, to what extent do private institutions and the public sector provide insurance against idiosyncratic shocks to individual regions? Second, to what extent does the public sector reduce long-term differences between regions? While the federal government channel is not found to have a stabilising effect, private capital flows provide almost complete insurance against short-term shocks. In sharp contrast, the fiscal transfer system achieves a substantial reduction of long term disparities between regions. These results show that fiscal transfers in unified Germany are mainly concerned with redistribution in favor of depressed regions rather than providing insurance against idiosyncratic shocks. Copyright (c) 2006 the author(s). Journal compilation (c) 2006 RSAI.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 85 (2006)
Issue (Month): 2 (06)
|Contact details of provider:|| Web page: http://www.blackwellpublishing.com/journal.asp?ref=1056-8190|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Asdrubali, Pierfederico & Kim, Soyoung, 2004.
"Dynamic risksharing in the United States and Europe,"
Journal of Monetary Economics,
Elsevier, vol. 51(4), pages 809-836, May.
- Pierfederico Asdrubali & Soyoung Kim, 2000. "Dynamic Risk Sharing in the United States and Europe," Econometric Society World Congress 2000 Contributed Papers 1621, Econometric Society.
- Johnson, Paul A., 2005. "A continuous state space approach to "Convergence by Parts"," Economics Letters, Elsevier, vol. 86(3), pages 317-321, March.
- Johnson, Paul, 2003. "A Continuous State Space Approach to “Convergence by Parts”," Vassar College Department of Economics Working Paper Series 54, Vassar College Department of Economics.
- Bernard Fingleton & Enrique López-Bazo, 2006. "Empirical growth models with spatial effects," Papers in Regional Science, Wiley Blackwell, vol. 85(2), pages 177-198, 06. Full references (including those not matched with items on IDEAS)