Effectiveness of automatic economic stabilisers in the European Union

Bogumiła Mucha-Leszko, Magdalena Katarzyna Kąkol

Abstract


The subject of this article is to estimate the EU’s fiscal policy, using theoretical and empirical approaches. The authors try to answer the question “how effective are fiscal stabilisers”? On the basis of the analysis conducted it has been found that the sensitivity of budget revenues to the business cycle for the EU-27 amounts to 0.43 but it varies from 0.58 in Sweden to 0.27 in Lithuania. Similarly, the research results concerning absorption of income shocks that have an effect on the level of consumption are diversified.

Keywords


European Union; automatic stabilisers; fiscal stabilisers in EMU

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DOI: http://dx.doi.org/10.17951/h.2013.47.2.123
Date of publication: 2015-07-23 22:35:27
Date of submission: 2015-07-19 17:34:22


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