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

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  • Attilio Gardini

    (Università di Bologna)

  • Giuseppe Cavaliere

    (Università di Bologna)

  • Luca Fanelli

    (Università di Bologna)

Abstract

We investigate the extent of risk sharing among the Italian regions with respect to both longrun and short-run income fluctuations. We use Vector Equilibrium Correction Models (VEqCMs) with the aim of testing all implications of the theory without preliminar data filtering, and without imposing constraints on the homogeneity of preferences across regions. Our estimates over the 1960-1995 period show that preferences are not homogeneous across regions and that the evidence in favour of regional risk sharing is more pronounced than commonly emphasized in previous research, although for some regions a high degree of risk aversion restricts the full effectiveness of the stabilisation strategies.

Suggested Citation

  • Attilio Gardini & Giuseppe Cavaliere & Luca Fanelli, 2005. "Risk Sharing, avversione al rischio e stabilizzazione delle economie regionali in Italia," Rivista di Politica Economica, SIPI Spa, vol. 95(3), pages 219-266, May-June.
    • Handle: RePEc:rpo:ripoec:v:95:y:2005:i:3:p:219-266
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    Cited by:

    1. Cavaliere, Giuseppe & Fanelli, Luca & Gardini, Attilio, 2006. "Regional consumption dynamics and risk sharing in Italy," International Review of Economics & Finance, Elsevier, vol. 15(4), pages 525-542.
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    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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