Uncertain income and redistribution in a federal system

• 成果类型: Article
• 署名作者: Lee, K
• 署名单位: University System of Maryland; Towson University
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/S0047-2727(97)00093-5
• 发表日期: 1998
• 页码: 413-433
• 关键词: uncertain income; redistribution; federal system

摘要

This paper considers income redistribution in a federal system where regions experience random shacks. Federal redistribution serves as insurance against jurisdiction-specific shocks, but provides a uniform assistance to the poor and cannot suit individual jurisdictions' demands for redistribution, consequently, whether the federal government should redistribute depends on the advantage of pooling the risk and the disadvantage of compromising different preferences for redistribution. With mobile individuals, federal redistribution loses its advantage, because migration ensures the equalization of factor incomes between regions, and because even local redistribution serves as insurance. However, local redistribution creates fiscal externalities and distorts the allocation of labor. (C) 1998 Elsevier Science S.A.