| Abstract [eng] |
70 pages, 3 tables, 13 pictures, 57 references. The main objective of this master's thesis is to determine which automatic stabilizers have the greatest effect in ensuring that economic shocks during recessions are mitigated as much as possible and damage to household disposable income is minimized. The work consists of three main parts: analysis of scientific literature, empirical research and its results, conclusions and recommendations. The literature review includes a comprehensive review of current information on automatic stabilizers and fiscal policy. This section reviews the theoretical underpinnings of automatic stabilizers and examines empirical research in this area, as well as the various types of fiscal policy, its roles, functions, and potential constraints and facilitations in terms of economic stabilization. In addition, this part of the paper delves into the effectiveness of automatic stabilization and examines different methods for measuring, evaluating and determining the optimal levels of automatic stabilization required to reduce fluctuations occurring in various economic cycles. In the following part, an empirical study was conducted to assess the effectiveness of automatic stabilizers in the European Union member states during and after the economic fluctuations caused by the Great Recession. This study used a combination of conventional and complementary methods used by researchers in the field. The empirical model relied on panel regression analysis to discover a direct relationship between household disposable income and selected automatic stabilizers, thereby determining which stabilizers have the greatest impact on household disposable income. The results of the empirical study showed that although government spending and unemployment insurance may not directly affect household disposable income, they may indirectly affect household welfare. Meanwhile, changes in social security and tax contributions can have a direct and highly significant impact on household disposable income. Finally, the study's conclusions and recommendations summarize insights from the empirical study that have critical implications for policy makers in both the short and long term. In addition, the study explores possible directions for further research where the indirect effects of automatic stabilizers could be explored in more detail and the study could be extended to examine the effectiveness of automatic stabilizers in different regions or countries outside the EU, providing a broader perspective on their impact on household disposable income during recessions. |
