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.
|Titolo:||Where should the elderly live and who should pay for their care?|
MICHELETTO, LUCA (Ultimo)
|Parole Chiave:||Agglomeration effects; Congestion effects; Fiscal federalism; Grants; Household mobility|
|Settore Scientifico Disciplinare:||Settore SECS-P/03 - Scienza delle Finanze|
|Data di pubblicazione:||giu-2010|
|Digital Object Identifier (DOI):||10.1111/j.1467-9442.2010.01601.x|
|Appare nelle tipologie:||01 - Articolo su periodico|