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The Role Of The Automatic Stabilizers In Modern Economy

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  • Stevan Luković

    (University of Kragujevac, Faculty of Economics)

Abstract

Automatic stabilizers as a factor of cyclical fluctuations stabilization attract economists' attention for several decades. This paper deals with the mechanisms through which automatic stabilizers influence economy and positive and negative effects on aggregate demand they can produce. It is common when discussing automatic stabilizers to put the accent on certain tax categories, such as personal income tax and corporate income tax, оr some public expenditures, such as unemployment benefits and social protection. Given that, here only fiscal stabilizers will be discussed, although some nonfiscal categories also demonstrate stabilizing impact.

Suggested Citation

  • Stevan Luković, 2014. "The Role Of The Automatic Stabilizers In Modern Economy," Ekonomika, Journal for Economic Theory and Practice and Social Issues 2014-01, „Ekonomika“ Society of Economists, Niš (Serbia).
    • Handle: RePEc:esb:casprv:2014-117
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Personal income tax; Corporate income tax; Unemployment benefits; Social Protection; Income redistribution;
    All these keywords.

    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H29 - Public Economics - - Taxation, Subsidies, and Revenue - - - Other
    • H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus

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