How Do Countries Smooth Regional Disturbances? Risksharing in Spain: 1973-1993
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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|Date of creation:||1997|
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