منابع مشابه
Optimal Automatic Stabilizers∗
Should the generosity of unemployment benefits and the progressivity of income taxes depend on the presence of business cycles? This paper proposes a tractable model where there is a role for social insurance against uninsurable shocks to income and unemployment, as well as inefficient business cycles driven by aggregate shocks through matching frictions and nominal rigidities. We derive an aug...
متن کاملReal Business Cycles and Automatic Stabilizers∗
We show that in a standard, technology shock-driven one-sector real business cycle model, the stabilization effects of government fiscal policy depend crucially on how labor hours enter the household’s period utility function and the associated labor-market behavior. In particular, when the household utility is logarithmic in both consumption and leisure, income taxes are destabilizing and gove...
متن کاملMonetary Policy and Automatic Stabilizers: the Role of Progressive Taxation
We study the e¤ects of progressive labor income taxation in an otherwise standard NK model. We show that progressive taxation (i) introduces a trade-o¤ between output and ination stabilization and a¤ects the slope of the Phillips Curve; (ii) acts as automatic stabilizer changing the responses to technology shocks and demand shocks (iii) alters the prescription for the optimal monetary policy. ...
متن کاملAutomatic Stabilizers and Economic Crisis: US vs. Europe
This paper analyzes the effectiveness of the tax and transfer systems in the European Union and the US to act as an automatic stabilizer in the current economic crisis. We find that automatic stabilizers absorb 38 per cent of a proportional income shock in the EU, compared to 32 per cent in the US. In the case of an unemployment shock 48 per cent of the shock are absorbed in the EU, compared to...
متن کاملAutomatic Stabilizers, Economic Crisis and Income Distribution in Europe
Automatic Stabilizers, Economic Crisis and Income Distribution in Europe This paper investigates to what extent the tax and transfer systems in Europe protect households at different income levels against losses in current income caused by economic downturns like the present financial crisis. We use a multi country micro simulation model to analyse how shocks on market income and employment are...
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ژورنال
عنوان ژورنال: Journal of Monetary Economics
سال: 1999
ISSN: 0304-3932
DOI: 10.1016/s0304-3932(99)00015-x