The Extent and Composition of Automatic Stabilization in EU Countries

The Extent and Composition of Automatic Stabilization in EU Countries
READ MORE...
Volume/Issue: Volume 2023 Issue 103
Publication date: May 2023
ISBN: 9798400243394
$20.00
Add to Cart by clicking price of the language and format you'd like to purchase
Available Languages and Formats
paperback else
pdf else
epub else
English
Prices in red indicate formats that are not yet available but are forthcoming.
Topics covered in this book

This title contains information about the following subjects. Click on a subject if you would like to see other titles with the same subjects.

Economics- Macroeconomics , Economics / General , Income stabilization , Demand stabilization , Euromod , EU SILC , stabilization coefficient , market income , Income , Income shocks , Disposable income , Consumption , Income distribution , Europe , Global

Summary

This paper analyses the magnitude of automatic income and demand stabilization in EU Member States between 2011 to 2019. Our analysis finds that automatic income stabilization in 2019 averaged 41.3 percent at the EU level, with considerable variation among Member States. While the extent of stabilization is similar across income groups within countries, the source of stabilization differs, with income taxation (transfers) being more important for high-income (low-income) households. Income stabilization proved stable over time, with a few exceptions driven by major reforms. EU-level demand stabilization averaged 84.7 percent, increasing with household income and reflecting the greater ability of richer households to smooth consumption.