Abstract
We study the effect of size differences for an optimal risk sharing system of intergovernmental transfers in Germany. The German fiscal transfer system should account for the fact that an optimal insurance mechanism has the property that smaller states contribute a smaller share of their tax revenue to the redistribution mechanism.
Item Type: | Paper |
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Keywords: | Fiscal federalism; risk sharing; size asymmetry |
Faculties: | Economics > Chairs > MPI for Tax Law and Public Finance |
Subjects: | 300 Social sciences > 330 Economics |
JEL Classification: | D70, H41, H77 |
Language: | English |
Item ID: | 24419 |
Date Deposited: | 30. Mar 2015, 13:24 |
Last Modified: | 03. Mar 2017, 10:54 |