Risk sharing in the Brazilian regional case

Detalhes bibliográficos
Ano de defesa: 2020
Autor(a) principal: Silva, Eduardo Teixeira de Carvalho
Orientador(a): Não Informado pela instituição
Banca de defesa: Não Informado pela instituição
Tipo de documento: Dissertação
Tipo de acesso: Acesso aberto
Idioma: eng
Instituição de defesa: Biblioteca Digitais de Teses e Dissertações da USP
Programa de Pós-Graduação: Não Informado pela instituição
Departamento: Não Informado pela instituição
País: Não Informado pela instituição
Palavras-chave em Português:
Link de acesso: https://www.teses.usp.br/teses/disponiveis/96/96131/tde-31082020-154431/
Resumo: The goal of this dissertation is to evaluate in which degree and how the consumption risk sharing is achieved among Brazilian states. The main result of consumption risk sharing theory entails that if all the consumption risk sharing opportunities are explored, consumption on regional and aggregate levels should be perfect correlated and individual income variations have no effect on consumption. At first place, this study sought to analyze in which degree the Brazilian states consumption is related to the country level. The results for the regional case are then compared to the international, in order to examine if the reduced number of barriers within the states encourages risk sharing, as is pointed at empirical literature on the area. Lastly, this research explores what is the role of fiscal federalism as a stabilizer, analyzing from taxes and transfers data in which degree the state income volatility is reduced by the federal government. The results point to an elevated degree of consumption integration among the Brazilian states, while the country presents a lower degree of risk sharing with its neighbor countries. Besides that, the results suggests that fiscal federalism acts as a stabilizer of state income, reducing around 13% the effect of idiosyncratic shocks.