Dolls, Mathias; Fuest, Clemens; Peichl, Andreas - In: Journal of Public Economics 96 (2012) 3, pp. 279-294
This paper analyzes the effectiveness of the tax and transfer systems in the EU and the US to provide income insurance through automatic stabilization in the recent economic crisis. We find that automatic stabilizers absorb 38% of a proportional income shock in the EU, compared to 32% in the US....
