approach to characterize the redistributive preferences embodied in the welfare systems of 17 EU countries and the US. Implicit …

margins for 17 EU countries and the US. Using the same data, inequality aversion is measured as the degree of redistribution …

income shock in the EU, compared to 32 per cent in the US. In the case of an unemployment shock 48 per cent of the shock are … absorbed in the EU, compared to 34 per cent in the US. This cushioning of disposable income leads to a demand stabilization of … 23 to 32 per cent in the EU and 19 per cent in the US. There is large heterogeneity within the EU. Automatic stabilizers …