01789cas a2200265 a 4500 AALejournalIMF016979 230101c9999 xx r poo 0 0eng d 5.00 USD 9781498379601 1018-5941 BD-DhAAL BD-DhAAL Poghosyan, Tigran. The Role of Fiscal Transfers in Smoothing Regional Shocks : Evidence from Existing Federations / Tigran Poghosyan, Abdelhak Senhadji, Carlo Cottarelli. Washington, D.C. : International Monetary Fund, 2016. 1 online resource (34 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students We assess the extent to which fiscal transfers smooth regional shocks in three large federations: the U.S., Canada, and Australia. We find that fiscal transfers offset 4-11 percent of idiosyncratic shocks (risk-sharing) and 13-24 percent of permanent shocks (redistribution). This fiscal insurance largely operates through automatic stabilizers embedded in a central budget primarily through federal taxes and transfers to individuals, rather than transfers from the central government to state budgets. These results have implications for the design of fiscal risk-sharing mechanisms in the euro area. Mode of access: Internet Cottarelli, Carlo. Senhadji, Abdelhak. IMF Working Papers; Working Paper ; No. 2016/141 Full text available on IMF http://elibrary.imf.org/view/journals/001/2016/141/001.2016.issue-141-en.xml IMF e-Library