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Europe Through the Crisis: Discretionary Policy Changes and Automatic Stabilizers

Paulus, Alari and Tasseva, Iva Valentinova (2020) 'Europe Through the Crisis: Discretionary Policy Changes and Automatic Stabilizers.' Oxford Bulletin of Economics and Statistics, 82 (4). pp. 864-888. ISSN 0305-9049

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Tax‐benefit policies affect changes in household incomes through two main channels: discretionary policy changes and automatic stabilizers. We study their role in the EU countries in 2007–14 using an extended decomposition approach. Our results show that the two policy actions often reduced rather than increased inequality of net incomes, and so helped offset the inequality‐increasing impact of growing disparities in gross market incomes. While inequality reductions were achieved mainly through benefits using both routes, policy changes to and the automatic stabilization response of taxes and contributions raised inequality in some countries and lowered it in others.

Item Type: Article
Divisions: Faculty of Social Sciences
Faculty of Social Sciences > Institute for Social and Economic Research
SWORD Depositor: Elements
Depositing User: Elements
Date Deposited: 06 Feb 2020 09:30
Last Modified: 06 Jan 2022 13:55

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