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| Alfred Greiner and Benjamin K Owusu |
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| ''How to spend 750 billion euro? Applying sacrifice theory to determine Covid-19 compensations in the EU'' |
| ( 2020, Vol. 40 No.3 ) |
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| In this note we consider an economic union consisting of sovereign national states. An asymmetric shock hits the union and as a result it decides to set up a fund in order to compensate the countries in the union. We show how sacrifice theory can be used to determine the compensation payments for the countries in a way such that the relative damages after compensation are equal across countries. Finally, we apply our results to determine the Covid-19 compensation payments in the EU |
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| Keywords: Public transfers, sacrifice theory, economic union
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JEL: H1 - Structure and Scope of Government: General
H8 - Public Economics: Miscellaneous Issues: General |
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| Manuscript Received : Jun 17 2020 | | Manuscript Accepted : Sep 24 2020 |
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