Authors: | Jüßen, Falko |
Title: | Interregional risk sharing and fiscal redistribution in reunified Germany |
Language (ISO): | en |
Abstract: | This paper provides empirical evidence of interregional risk sharing in reunified Germany. The focus is on two related questions: First, to what extent do private institutions and the public sector provide insurance against asymmetric 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 stabilizing effect, private factor income 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 reunified Germany are mainly concerned with redistribution in favor of depressed regions rather than providing insurance against idiosyncratic shocks. |
Subject Headings: | Distribution dynamics Fiscal redistribution Interregional risk sharing Regional disparities |
URI: | http://hdl.handle.net/2003/23075 http://dx.doi.org/10.17877/DE290R-8025 |
Issue Date: | 2006-11-10T07:45:28Z |
Appears in Collections: | Sonderforschungsbereich (SFB) 475 |
Files in This Item:
File | Description | Size | Format | |
---|---|---|---|---|
tr40-06.pdf | DNB | 221.4 kB | Adobe PDF | View/Open |
This item is protected by original copyright |
This item is protected by original copyright rightsstatements.org