Private and public risk sharing across Italian regions

Cristiana Fiorelli, Massimo Giannini and Barbara Martini

Journal of Macroeconomics, 2022, vol. 74, issue C

Abstract: This paper measures the level of total risk sharing across Italian regions and compares the role of private and public risk sharing mechanisms over the period 2000-2016. Our findings suggest that market mechanisms of risk sharing are the main tool to absorb region-specific output shocks: labour mobility and interregional earnings flows absorbed 38 percent of idiosyncratic shocks against 17 percent of interregional fiscal transfers. Overall, risk-sharing channels smooth about 76 percent of region-specific shocks and their role is even stronger during crisis periods.

Keywords: Risk-sharing; Italian regions; Interregional flows; Labour mobility (search for similar items in EconPapers)
JEL-codes: E2 F15 R10 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jmacro:v:74:y:2022:i:c:s0164070422000635

DOI: 10.1016/j.jmacro.2022.103470

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