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- W2811249911 abstract "Abstract This paper addresses the following question: What are the implications of the asymmetry of balanced-budget rules for interregional risk sharing in a fiscal union? We investigate our research question in a two-region, open economy DSGE model that is augmented with the public-sector features of a federal state. The analysis demonstrates that the asymmetry of balanced-budget rules is detrimental for the risk sharing in the union. The degree of risk sharing is a function of the public good productivity, specification of the technology process, and distribution of productivity shocks in the fiscal union." @default.
- W2811249911 created "2018-07-10" @default.
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- W2811249911 date "2018-09-01" @default.
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- W2811249911 title "Balanced-budget rules and risk-sharing in a fiscal union" @default.
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- W2811249911 doi "https://doi.org/10.1016/j.jmacro.2018.06.008" @default.
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