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Testing for the stability of automatic stabilizers

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  • Noel D. Uri

Abstract

This paper examines the question of the stability of automatic stabilizers in the United States. Using a test suggested by Brown, Durbin and Evans, the analysis suggests that the magnitude of automatic stabilization of economic activity afforded by personal tax receipts has remained virtually invariant over the period 1939–1985. The automatic stabilization effectiveness of transfer payments, however, has increased, especially since 1964. This is attributed to the implementaton of various Great Society Programs beginning in 1964.

Suggested Citation

  • Noel D. Uri, 1989. "Testing for the stability of automatic stabilizers," Applied Stochastic Models and Data Analysis, John Wiley & Sons, vol. 5(1), pages 13-24, March.
    • Handle: RePEc:wly:apsmda:v:5:y:1989:i:1:p:13-24
    DOI: 10.1002/asm.3150050103
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