The role of automatic stabilizers in business cycle: the case of indonesia

TThe use of large fiscal stimulus packages to dampen the impact of Covid-19 recently has raised concerns about the effectiveness of the discretionary fiscal policy. This paper aims at analysing the feasibility of automatic fiscal stabilisers to mitigate economic fluctuations in the case of Indonesi...

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Autor principal: Haryo Kuncoro
Formato: article
Lenguaje:EN
Publicado: University of A Coruna 2021
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Acceso en línea:https://doaj.org/article/65d00222e72440fca0b015fffc06e58a
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spelling oai:doaj.org-article:65d00222e72440fca0b015fffc06e58a2021-12-02T09:13:01ZThe role of automatic stabilizers in business cycle: the case of indonesia10.17979/ejge.2021.10.2.73662254-7088https://doaj.org/article/65d00222e72440fca0b015fffc06e58a2021-12-01T00:00:00Zhttps://revistas.udc.es/index.php/ejge/article/view/7366https://doaj.org/toc/2254-7088 TThe use of large fiscal stimulus packages to dampen the impact of Covid-19 recently has raised concerns about the effectiveness of the discretionary fiscal policy. This paper aims at analysing the feasibility of automatic fiscal stabilisers to mitigate economic fluctuations in the case of Indonesia. Using the IMF standard model for quarterly data over the period of 2001(1) to 2019(4), we find that the role of automatic fiscal stabilisers is getting greater both in revenue and spending. This implies that the automatic fiscal stabilisers are feasible as the main fiscal policy instrument for economic stability goals in the future. However, given the existing circumstances, Indonesia has to reform economic, regulatory, and institutional ecosystems in adopting the automatic fiscal stabilisers. Haryo KuncoroUniversity of A Corunaarticleautomatic stabilisersbusiness cyclediscretionary fiscal policygovernment spendingtaxesPolitical scienceJPolitical institutions and public administration (General)JF20-2112ENEuropean Journal of Government and Economics, Vol 10, Iss 2 (2021)
institution DOAJ
collection DOAJ
language EN
topic automatic stabilisers
business cycle
discretionary fiscal policy
government spending
taxes
Political science
J
Political institutions and public administration (General)
JF20-2112
spellingShingle automatic stabilisers
business cycle
discretionary fiscal policy
government spending
taxes
Political science
J
Political institutions and public administration (General)
JF20-2112
Haryo Kuncoro
The role of automatic stabilizers in business cycle: the case of indonesia
description TThe use of large fiscal stimulus packages to dampen the impact of Covid-19 recently has raised concerns about the effectiveness of the discretionary fiscal policy. This paper aims at analysing the feasibility of automatic fiscal stabilisers to mitigate economic fluctuations in the case of Indonesia. Using the IMF standard model for quarterly data over the period of 2001(1) to 2019(4), we find that the role of automatic fiscal stabilisers is getting greater both in revenue and spending. This implies that the automatic fiscal stabilisers are feasible as the main fiscal policy instrument for economic stability goals in the future. However, given the existing circumstances, Indonesia has to reform economic, regulatory, and institutional ecosystems in adopting the automatic fiscal stabilisers.
format article
author Haryo Kuncoro
author_facet Haryo Kuncoro
author_sort Haryo Kuncoro
title The role of automatic stabilizers in business cycle: the case of indonesia
title_short The role of automatic stabilizers in business cycle: the case of indonesia
title_full The role of automatic stabilizers in business cycle: the case of indonesia
title_fullStr The role of automatic stabilizers in business cycle: the case of indonesia
title_full_unstemmed The role of automatic stabilizers in business cycle: the case of indonesia
title_sort role of automatic stabilizers in business cycle: the case of indonesia
publisher University of A Coruna
publishDate 2021
url https://doaj.org/article/65d00222e72440fca0b015fffc06e58a
work_keys_str_mv AT haryokuncoro theroleofautomaticstabilizersinbusinesscyclethecaseofindonesia
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