A note on optimal insurance in an information constrained federal economy with incomplete degree of enforceability and negotiation costs
- Autores
- Espino, Emilio
- Año de publicación
- 1999
- Idioma
- inglés
- Tipo de recurso
- documento de trabajo
- Estado
- versión enviada
- Descripción
- This paper studies the optimal insurance contract between a state and the central government in a federal economy with moral hazard, risk of repudiation (given some enforceability technology) and aggregate uncertainty. Also, it considers date 0 negotiation costs to implement this contract. The distribution of the fiscal resources locally collected by the province at t+1 are affected by period t state´s effort to collect taxes. Also, every period a state has the right to get a fixed proportion of the taxes nationally collected by the central government. These resources are identically and independently distributed across time. Using a recursive formulation of the allocation problem (following Atkeson (1991)), some basic properties of the optimal insurance contract are discussed showing when, in particular, it is actually optimal just to give up any attempt to provide insurance to the province.
Departamento de Economía - Materia
-
Ciencias Económicas
economía
análisis de costes
contrato - Nivel de accesibilidad
- acceso abierto
- Condiciones de uso
- http://creativecommons.org/licenses/by/3.0/
- Repositorio
- Institución
- Universidad Nacional de La Plata
- OAI Identificador
- oai:sedici.unlp.edu.ar:10915/3510
Ver los metadatos del registro completo
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A note on optimal insurance in an information constrained federal economy with incomplete degree of enforceability and negotiation costsEspino, EmilioCiencias Económicaseconomíaanálisis de costescontratoThis paper studies the optimal insurance contract between a state and the central government in a federal economy with moral hazard, risk of repudiation (given some enforceability technology) and aggregate uncertainty. Also, it considers date 0 negotiation costs to implement this contract. The distribution of the fiscal resources locally collected by the province at t+1 are affected by period t state´s effort to collect taxes. Also, every period a state has the right to get a fixed proportion of the taxes nationally collected by the central government. These resources are identically and independently distributed across time. Using a recursive formulation of the allocation problem (following Atkeson (1991)), some basic properties of the optimal insurance contract are discussed showing when, in particular, it is actually optimal just to give up any attempt to provide insurance to the province.Departamento de Economía1999-11info:eu-repo/semantics/workingPaperinfo:eu-repo/semantics/submittedVersionDocumento de trabajohttp://purl.org/coar/resource_type/c_8042info:ar-repo/semantics/documentoDeTrabajoapplication/pdfhttp://sedici.unlp.edu.ar/handle/10915/3510enginfo:eu-repo/semantics/altIdentifier/url/http://www.depeco.econo.unlp.edu.ar/doctrab/doc18.pdfinfo:eu-repo/semantics/altIdentifier/issn/1853-3930info:eu-repo/semantics/openAccesshttp://creativecommons.org/licenses/by/3.0/Creative Commons Attribution 3.0 Unported (CC BY 3.0)reponame:SEDICI (UNLP)instname:Universidad Nacional de La Platainstacron:UNLP2025-09-29T10:49:12Zoai:sedici.unlp.edu.ar:10915/3510Institucionalhttp://sedici.unlp.edu.ar/Universidad públicaNo correspondehttp://sedici.unlp.edu.ar/oai/snrdalira@sedici.unlp.edu.arArgentinaNo correspondeNo correspondeNo correspondeopendoar:13292025-09-29 10:49:12.82SEDICI (UNLP) - Universidad Nacional de La Platafalse |
dc.title.none.fl_str_mv |
A note on optimal insurance in an information constrained federal economy with incomplete degree of enforceability and negotiation costs |
title |
A note on optimal insurance in an information constrained federal economy with incomplete degree of enforceability and negotiation costs |
spellingShingle |
A note on optimal insurance in an information constrained federal economy with incomplete degree of enforceability and negotiation costs Espino, Emilio Ciencias Económicas economía análisis de costes contrato |
title_short |
A note on optimal insurance in an information constrained federal economy with incomplete degree of enforceability and negotiation costs |
title_full |
A note on optimal insurance in an information constrained federal economy with incomplete degree of enforceability and negotiation costs |
title_fullStr |
A note on optimal insurance in an information constrained federal economy with incomplete degree of enforceability and negotiation costs |
title_full_unstemmed |
A note on optimal insurance in an information constrained federal economy with incomplete degree of enforceability and negotiation costs |
title_sort |
A note on optimal insurance in an information constrained federal economy with incomplete degree of enforceability and negotiation costs |
dc.creator.none.fl_str_mv |
Espino, Emilio |
author |
Espino, Emilio |
author_facet |
Espino, Emilio |
author_role |
author |
dc.subject.none.fl_str_mv |
Ciencias Económicas economía análisis de costes contrato |
topic |
Ciencias Económicas economía análisis de costes contrato |
dc.description.none.fl_txt_mv |
This paper studies the optimal insurance contract between a state and the central government in a federal economy with moral hazard, risk of repudiation (given some enforceability technology) and aggregate uncertainty. Also, it considers date 0 negotiation costs to implement this contract. The distribution of the fiscal resources locally collected by the province at t+1 are affected by period t state´s effort to collect taxes. Also, every period a state has the right to get a fixed proportion of the taxes nationally collected by the central government. These resources are identically and independently distributed across time. Using a recursive formulation of the allocation problem (following Atkeson (1991)), some basic properties of the optimal insurance contract are discussed showing when, in particular, it is actually optimal just to give up any attempt to provide insurance to the province. Departamento de Economía |
description |
This paper studies the optimal insurance contract between a state and the central government in a federal economy with moral hazard, risk of repudiation (given some enforceability technology) and aggregate uncertainty. Also, it considers date 0 negotiation costs to implement this contract. The distribution of the fiscal resources locally collected by the province at t+1 are affected by period t state´s effort to collect taxes. Also, every period a state has the right to get a fixed proportion of the taxes nationally collected by the central government. These resources are identically and independently distributed across time. Using a recursive formulation of the allocation problem (following Atkeson (1991)), some basic properties of the optimal insurance contract are discussed showing when, in particular, it is actually optimal just to give up any attempt to provide insurance to the province. |
publishDate |
1999 |
dc.date.none.fl_str_mv |
1999-11 |
dc.type.none.fl_str_mv |
info:eu-repo/semantics/workingPaper info:eu-repo/semantics/submittedVersion Documento de trabajo http://purl.org/coar/resource_type/c_8042 info:ar-repo/semantics/documentoDeTrabajo |
format |
workingPaper |
status_str |
submittedVersion |
dc.identifier.none.fl_str_mv |
http://sedici.unlp.edu.ar/handle/10915/3510 |
url |
http://sedici.unlp.edu.ar/handle/10915/3510 |
dc.language.none.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
info:eu-repo/semantics/altIdentifier/url/http://www.depeco.econo.unlp.edu.ar/doctrab/doc18.pdf info:eu-repo/semantics/altIdentifier/issn/1853-3930 |
dc.rights.none.fl_str_mv |
info:eu-repo/semantics/openAccess http://creativecommons.org/licenses/by/3.0/ Creative Commons Attribution 3.0 Unported (CC BY 3.0) |
eu_rights_str_mv |
openAccess |
rights_invalid_str_mv |
http://creativecommons.org/licenses/by/3.0/ Creative Commons Attribution 3.0 Unported (CC BY 3.0) |
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application/pdf |
dc.source.none.fl_str_mv |
reponame:SEDICI (UNLP) instname:Universidad Nacional de La Plata instacron:UNLP |
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SEDICI (UNLP) - Universidad Nacional de La Plata |
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score |
13.070432 |