| Andrea Roberto Lamorgese, Ente Einaudi |
| The Geography of Intercity Risk-Sharing |
| Session: C-12-17 Wednesday 16 August 2000 by Lamorgese, Andrea Roberto |
| This paper investigates the channels of risk sharing among the cities of the United States. Contributions for social security and government transfers (government channel) take the bulk of smoothing (17%), and intercity mobility ranks high: about 6% of income shocks are smoothed via the choice of working in another city than the place of residence. The empirical analysis shows another interesting result: cities facing lower income volatility also smooth a smaller share of it, probably reflecting easier access to the credit channel. Finally, the analysis in the frequency domain shows that income smoothing is achieved via different channels and to a different extent over the business cycle. |
| Submitted paper full-text in .pdf |