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Risk Sharing and Redistribution in a Federal System with Population Mobility

Author

Listed:
  • Arman Mansoorian

    (York University, Canada)

Abstract

This 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.

Suggested Citation

  • Arman Mansoorian, 1996. "Risk Sharing and Redistribution in a Federal System with Population Mobility," Working Papers 1996_03, York University, Department of Economics.
    • Handle: RePEc:yca:wpaper:1996_03
    as

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    File URL: ftp://dept.econ.yorku.ca/pub/working_papers/96-03.pdf
    File Function: First version, 1996
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    References listed on IDEAS

    as
    1. John B. Burbidge & Gordon M. Myers, 1994. "Redistribution within and across the Regions of a Federation," Canadian Journal of Economics, Canadian Economics Association, vol. 27(3), pages 620-636, August.
    2. Obstfeld, Maurice, 1994. "Risk-Taking, Global Diversification, and Growth," American Economic Review, American Economic Association, vol. 84(5), pages 1310-1329, December.
    3. Mansoorian, Arman & Myers, Gordon M., 1993. "Attachment to home and efficient purchases of population in a fiscal externality economy," Journal of Public Economics, Elsevier, vol. 52(1), pages 117-132, August.
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    8. Flatters, Frank & Henderson, Vernon & Mieszkowski, Peter, 1974. "Public goods, efficiency, and regional fiscal equalization," Journal of Public Economics, Elsevier, vol. 3(2), pages 99-112, May.
    9. Persson, Torsten & Tabellini, Guido, 1996. "Federal Fiscal Constitutions: Risk Sharing and Moral Hazard," Econometrica, Econometric Society, vol. 64(3), pages 623-646, May.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Risk Sharing; Federation; Population Mobility; Efficiency;
    All these keywords.

    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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