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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Main Author:	Haryo Kuncoro
Format:	article
Language:	EN
Published:	University of A Coruna 2021
Subjects:	automatic stabilisers business cycle discretionary fiscal policy government spending taxes Political science J Political institutions and public administration (General) JF20-2112
Online Access:	https://doaj.org/article/65d00222e72440fca0b015fffc06e58a
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id	oai: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 AT haryokuncoro roleofautomaticstabilizersinbusinesscyclethecaseofindonesia
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The role of automatic stabilizers in business cycle: the case of indonesia

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