Mabbett, Deborah and Schelkle, Waltraud 
ORCID: 0000-0003-4127-107X
(2007)
Bringing macroeconomics back into the political economy of reform: the Lisbon Agenda and the 'fiscal philosophy' of EMU.
Journal of Common Market Studies, 45 (1).
pp. 81-103.
ISSN 0021-9886
Abstract
The Lisbon Strategy supports reform of Member States’ tax-benefit systems while the ‘fiscal philosophy’ of the EMU postulates that governments should allow only automatic stabilizers, built into tax-benefit systems, to smooth aggregate income. We ask whether these two pillars of EU economic governance are compatible. By exploring how structural reforms affect fiscal stabilization, we complement a political economy literature that asks whether fiscal consolidation fosters or hinders structural reforms. Using EUROMOD, a tax-benefit model for the EU-15, we identify the connections between specific tax and benefit reforms and the size of the stabilizers. We conclude that Lisbon-type reforms may worsen the stabilizing capacity of tax-benefit systems.
| Item Type: | Article |
|---|---|
| Official URL: | http://www.blackwellpublishing.com/journal.asp?ref... |
| Additional Information: | © 2007 The Authors |
| Divisions: | European Institute |
| Subjects: | H Social Sciences > HC Economic History and Conditions J Political Science > JN Political institutions (Europe) |
| Date Deposited: | 22 Jul 2008 12:50 |
| Last Modified: | 11 Dec 2024 23:07 |
| URI: | http://eprints.lse.ac.uk/id/eprint/14934 |
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