Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/115081
Authors: 
Hofer, Helmut
Hanappi, Tibor
Müllbacher, Sandra
Year of Publication: 
2012
Series/Report no.: 
NRN Working Paper, NRN: The Austrian Center for Labor Economics and the Analysis of the Welfare State 1203
Abstract: 
In the Great Recession market income of the households in Austria has been reduced and unemployment increased. In this paper we examine the impact of automatic stabilizers on cushioning such income losses. We use ITABENA, an Austrian tax-benefit model, to analyze how shocks on market income and employment are mitigated by taxes and transfers. In the case of a proportional income shock 46 percent of the shock will be absorbed by automatic stabilizers in Austria. For the unemployment shocks automatic stabilizers absorb 68 percent. Automatic stabilizers increase the redistributive effects of the Austrian tax benefit system. We find that recent changes in the income tax code have almost no impact on the size of automatic stabilizers in Austria.
Subjects: 
automatic stabilization
microsimulation
tax reforms
JEL: 
E32
E63
H2
H31
Document Type: 
Working Paper

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