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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. © 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. | |
| Digital Object Identifier (DOI): | http://dx.doi.org/10.1111/j.1467-9442.2010.01601.x | |
| Appare nelle tipologie: | 01 - Article in academic journal / Articolo su rivista scientifica |
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