Automatic stabilizers in the Eurozone: analysis of their effectiveness at the member state and euro area level and in international comparison

Publication type

Report

Authors

Publication date

November 15, 2014

Summary:

We analyze the effectiveness of fiscal
policy in general and automatic stabilizers in particular to stabilize output in
Eurozone member states under the current institutional framework of fiscal governance. First, a descriptive analysis based on macro
data is conducted for the period 2007-2014, both for ex-post as well as
real-time data. In the second step, we analyze the potential of automatic
stabilizers for output stabilization in steady state, i.e., when member states
have achieved balanced budgets, using micro data and microsimulation tools for
Europe and the United States.

Subjects

Link

http://ftp.zew.de/pub/zew-docs/gutachten/ZEWAutomaticStabilizersEurozone2015.pdf

#522899

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