Published in:Bielefeld Working Papers in Economics and Management ; No. 04-2020
Extent:
1 Online-Ressource (15 p)
Language:
English
DOI:
10.2139/ssrn.3634483
Identifier:
Origination:
Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments June 1, 2020 erstellt
Description:
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 compensations payments in the EU