Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/18811 
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dc.contributor.authorAndersen, Torben M.en
dc.date.accessioned2009-01-28T15:53:03Z-
dc.date.available2009-01-28T15:53:03Z-
dc.date.issued2005-
dc.identifier.urihttp://hdl.handle.net/10419/18811-
dc.description.abstractThis paper discusses the need and scope for an active fiscal stabilization policy. It is arguedthat the effectiveness of fiscal policy as a short run stabilizer does not depend on the long runmultipliers of (balanced budget) fiscal policies. To the extent that activity can be affected byaggregate demand in the short run, there is a case for a fiscal stabilization policy in terms oftemporary variations in taxes or public consumption contingent on the state of the economy.The effectiveness of fiscal policy is supported by empirical evidence. However, anappropriate policy intervention depends both on the nature of the shock and the structure ofthe economy. There are thus fundamental information problems in pursuing discretionaryfiscal policies on top of political economy concerns, and fiscal fine-tuning is not to berecommended. Automatic stabilizers do not to the same extent suffer from these problems,but their strength is not by design but the net result of other policy considerations. Hence,there is a need to consider the structure and size of automatic stabilizers.en
dc.language.isoengen
dc.publisher|aCenter for Economic Studies and ifo Institute (CESifo) |cMunichen
dc.relation.ispartofseries|aCESifo Working Paper |x1447en
dc.subject.jelE6en
dc.subject.ddc330en
dc.subject.keywordshocksen
dc.subject.keywordinsuranceen
dc.subject.keywordadjustment failuresen
dc.subject.keywordrulesen
dc.subject.keyworddiscretion and fiscal policyen
dc.subject.stwAntizyklische Finanzpolitiken
dc.subject.stwFinanzpolitiken
dc.subject.stwKonjunkturpolitiken
dc.subject.stwDiskretionäre Politiken
dc.subject.stwEingebauter Stabilisatoren
dc.subject.stwRegelgebundene Politiken
dc.titleIs there a role for an active fiscal stabilization policy?-
dc.typeWorking Paperen
dc.identifier.ppn485163209en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen

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