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| dc.title | Automatic Stabilization and Fiscal Policy: Some Quantitative Implications for Latin America and the Caribbean |
| dc.contributor.author | Espino, Emilio |
| dc.contributor.author | González Rozada, Martín |
| dc.contributor.orgunit | Institutions for Development Sector |
| dc.coverage | The Caribbean |
| dc.coverage | South America |
| dc.coverage | Central America |
| dc.date.available | 2012-11-21T00:00:00 |
| dc.date.issue | 2012-11-20T00:00:00 |
| dc.description.abstract | This paper provides an estimation of the size of income and demand automatic stabilizers in a representative sample of Latin American and Caribbean (LAC) countries. The authors find that when a negative unemployment shock hits the economy, the size of income and demand automatic stabilizers coefficients is much smaller than the size of these coefficients in Europe and the United States. This evidence suggests that there is room for policies that can enlarge the absorption by these coefficients as a way to contribute to macroeconomic stability in LAC countries. The paper analyzes four policies affecting the income stabilization coefficient and two others affecting directly the demand stabilization coefficient. The main results suggest that changing the minimum tax exemption and its progressiveness using the tax structure of middle-income countries outside the LAC region is the best option to enlarge the size of the income and demand stabilization coefficients, and in this way to reduce the need of discretionary fiscal policies in theregion. |
| dc.format.extent | 47 |
| dc.identifier.doi | http://dx.doi.org/10.18235/0011425 |
| dc.identifier.url | https://publications.iadb.org/publications/english/document/Automatic-Stabilization-and-Fiscal-Policy-Some-Quantitative-Implications-for-Latin-America-and-the-Caribbean.pdf |
| dc.language.iso | en |
| dc.medium | Adobe PDF |
| dc.publisher | Inter-American Development Bank |
| dc.subject | Fiscal Policy |
| dc.subject | Financial Crisis and Structural Adjustement |
| dc.subject | Production and Business Cycle |
| dc.subject | Income, Consumption and Saving |
| dc.subject | Workforce and Employment |
| dc.subject.jelcode | E32 - Business Fluctuations • Cycles |
| dc.subject.jelcode | E63 - Comparative or Joint Analysis of Fiscal and Monetary Policy • Stabilization • Treasury Policy |
| dc.subject.jelcode | H2 - Taxation, Subsidies, and Revenue |
| dc.subject.jelcode | H31 - Household |
| dc.subject.keywords | Income and demand automatic stabilizers, economic cycle, microsimulations |
| dc.type | Working Papers |
| idb.identifier.pubnumber | Working Papers |