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EnglishWe consider a model with a population consisting of earners and retired persons; elderly care is publicly provided. There is one big city, where congestion effects and agglomeration forces are at work, and a number of small villages. We show how the externalities related to population-mobility lead to an inefficient spatial distribution of earners and retirees, and we characterize the second best solution. Decentralization of this solution, in a fiscal federalism structure, requires the use of taxes and subsidies proportional to the number of earners and retired persons living in the city and the villages.
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| Titolo: | Where should the elderly live and who should pay for their care? |
| Data di pubblicazione: | 2010 |
| Autori: | |
| Autori: | T. Aronsson; S. Blomquist; L. Micheletto |
| Rivista: | SCANDINAVIAN JOURNAL OF ECONOMICS |
| Abstract: | We consider a model with a population consisting of earners and retired persons; elderly care is publicly provided. There is one big city, where congestion effects and agglomeration forces are at work, and a number of small villages. We show how the externalities related to population-mobility lead to an inefficient spatial distribution of earners and retirees, and we characterize the second best solution. Decentralization of this solution, in a fiscal federalism structure, requires the use of taxes and subsidies proportional to the number of earners and retired persons living in the city and the villages. |
| Appare nelle tipologie: | 01 - Article in academic journal / Articolo su rivista Scientifica |
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