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. © The editors of the Scandinavian Journal of Economics 2010.
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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; Micheletto, Luca |
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. © The editors of the Scandinavian Journal of Economics 2010. |
Codice identificativo Scopus: | 2-s2.0-77954164036 |
Codice identificativo ISI: | WOS:000278112600004 |
Appare nelle tipologie: | 01 - Article in academic journal / Articolo su rivista Scientifica |