Dolls, Mathias; Fuest, Clemens; Peichl, Andreas - In: Perspektiven der Wirtschaftspolitik 11 (2010) 2, pp. 132-145
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 consider two scenarios: a proportional income shock and a shock on employment which increases the rate of unemployment. We...