Bielefeld University, Department of Business Administration and Economics
Doi
Abstract
Greiner A, Owusu B. How to spend 750 billion euro? Applying sacrifice theory to determine Covid-19 compensations in the EU. Universität Bielefeld Working Papers in Economics and Management. Vol 04-2020. Bielefeld: Bielefeld University, Department of Business Administration and Economics; 2020.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
