The Estimation Of Tax-Benefit Automatic Stabilizers In Serbia: A Combined Micro-Macro Approach
The large volatility of GDP due to the economic crisis, particularly in transition economies, has brought the issue of automatic stabilizers back into the focus of economic policy. The vast majority of empirical literature in this field relates to the estimation of the size of automatic stabilizers in developed countries, usually based on macroeconomic data. On the other hand empirical literature on this topic based on micro data, particularly for transition economies, is limited. This paper provides an evaluation of the size of automatic stabilizers in one transition economy (Serbia), by combining tax-benefit simulation modelling based on micro data and econometric methods based on macroeconomic data. The results show that, in the case of shock, around 17% of fall in market income would be absorbed by automatic stabilizers. Although the stabilizing effects of the tax-benefit system in Serbia are lower than in other European countries, the total size of automatic stabilizers is close to the average value in these countries, due to the higher elasticity of demand to income. The results also show that progressivity-enhancing income tax reform would only slightly increase automatic stabilizers, due to the large informal economy and the large share of agriculture in total households’ income.
Volume (Year): 58 (2013)
Issue (Month): 198 (July - September)
|Contact details of provider:|| Postal: |
Phone: (381 11) 302122
Fax: (381 11) 639 560
Web page: http://www.ekof.bg.ac.rs/
More information through EDIRC
|Order Information:|| Web: http://ea.ekof.bg.ac.rs/ Email: |
When requesting a correction, please mention this item's handle: RePEc:beo:journl:v:58:y:2013:i:198:p:61-88. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Goran Petrić)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.