Dolls, Mathias; Fuest, Clemens; Peichl, Andreas - 2012
This paper analyzes the effectiveness of the tax and transfer systems in the EU and the US to provide income insurance … income shock in the EU, compared to 32% in the US. In the case of an unemployment shock 47% of the shock is absorbed in the … EU, compared to 34% in the US. This cushioning of disposable income leads to a demand stabilization of up to 30% in the …