Fiscal Federalism, EMU and Shock Absorption Mechanisms: A Guide to the Literature

Luis Pacheco

European Integration online Papers (EIoP), 2000, vol. 4

Abstract: Fiscal federalism theory seeks to establish the optimal organization of a government, confined by certain geographic boundaries. The implications of that theory for the monetary unification process are shortly inquired. The literature measuring the redistribution and stabilization effects of the tax and transfer systems in different monetary unions is surveyed. The prospects of evolution to integration models with a federalist countenance are briefly analysed and it is given special attention to the projects of creation of a European Fiscal Transfers Scheme. That mechanism would provide the European economies with some degree of stabilization in substitution for the loss of the adjustment mechanisms. However, after analysing the different proposals for the creation of such mechanism we conclude that, given the shocks persistence, they easily become redistribution mechanisms.

Keywords: Amsterdam Treaty; asymmetric shocks; budget; EMU; fiscal federalism; fiscal policy; institutions; risk-sharing mechanisms; economics (search for similar items in EconPapers)
Date: 2000-03-10
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://eiop.or.at/eiop/texte/2000-004a.htm Abstract (text/html)
http://eiop.or.at/eiop/texte/2000-004.htm Full text (text/html)
http://eiop.or.at/eiop/pdf/2000-004.pdf Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:erp:eiopxx:p0047

Ordering information: This journal article can be ordered from
http://eiop.or.at/eiop/

Access Statistics for this article

European Integration online Papers (EIoP) is currently edited by Gerda Falkner

More articles in European Integration online Papers (EIoP) from European Community Studies Association Austria (ECSA-A) Contact information at EDIRC.
Bibliographic data for series maintained by Editorial Assistant ( this e-mail address is bad, please contact ).