The aim of the article is the estimation of the automatic stabilizers effectiveness in Poland. Calculations were based on quarterly data from the years 1995-2002 whereas the estimations of the automatic stabilizers effectiveness - on GDP elasticities of public revenues and expenditures and their impact on aggregate demand. It is estimated that automatic stabilizers in Poland smooth about 18% of GDP fluctuation. It is also shown that effectiveness of automatic stabilizers differs for different kinds of public revenues and expenditures. It can be enhanced by increasing corporate income tax and unemployment benefits, because both corporate income tax revenues and unemployment benefits are very sensitive to economic activity fluctuations.
P. Krajewski, Uniwersytet Lódzki, Instytut Ekonomii, ul. Rewolucji 1905r. 41, 90-214 Lódz, Poland
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