The Role of Fiscal Transfers in Smoothing Regional Shocks : Evidence from Existing Federations /

We assess the extent to which fiscal transfers smooth regional shocks in three large federations: the U.S., Canada, and Australia. We find that fiscal transfers offset 4-11 percent of idiosyncratic shocks (risk-sharing) and 13-24 percent of permanent shocks (redistribution). This fiscal insurance la...

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Chi tiết về thư mục
Tác giả chính: Poghosyan, Tigran
Tác giả khác: Cottarelli, Carlo, Senhadji, Abdelhak
Định dạng: Tạp chí
Ngôn ngữ:English
Được phát hành: Washington, D.C. : International Monetary Fund, 2016.
Loạt:IMF Working Papers; Working Paper ; No. 2016/141
Truy cập trực tuyến:Full text available on IMF
Miêu tả
Tóm tắt:We assess the extent to which fiscal transfers smooth regional shocks in three large federations: the U.S., Canada, and Australia. We find that fiscal transfers offset 4-11 percent of idiosyncratic shocks (risk-sharing) and 13-24 percent of permanent shocks (redistribution). This fiscal insurance largely operates through automatic stabilizers embedded in a central budget primarily through federal taxes and transfers to individuals, rather than transfers from the central government to state budgets. These results have implications for the design of fiscal risk-sharing mechanisms in the euro area.
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Mô tả vật lý:1 online resource (34 pages)
Định dạng:Mode of access: Internet
số ISSN:1018-5941
Truy cập:Electronic access restricted to authorized BRAC University faculty, staff and students