Dolls, Mathias; Fuest, Clemens; Peichl, Andreas - Cologne Graduate School in Management, Economics and … - 2010
-tional income shock in the EU, compared to 32 per cent in the US. In the case ofan unemployment shock 47 per cent of the shock are … absorbed in the EU, comparedto 34 per cent in the US. This cushioning of disposable income leads to a demandstabilization of up … to 30 per cent in the EU and up to 20 per cent in the US. Thereis large heterogeneity within the EU. Automatic …