The Role of Automatic Stabilizers in the U.s. Business Cycle


Most countries have automatic rules in their tax-and-transfer systems that are partly intended to stabilize economic fluctuations. This paper measures how effective they are. We put forward a model that merges the standard incomplete-markets model of consumption and inequality with the new Keynesian model of nominal rigidities and business cycles, and that… (More)


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Citations per Year

Citation Velocity: 21

Averaging 21 citations per year over the last 3 years.

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