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AUTOMATIC STABILIZERS DURING STAGFLATION

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Date Issued:
1978
Summary:
This thesis explored the impact of inflation upon fiscal automatic stabilizers during the 1973-75 recession. Our study confined itself to the three main devices purported to stabilize the U.S. economy automatically: (1) federal personal income tax liability, (2) corporate profits tax liability, and (3) unemployment compensation benefits. A recursive model, similar to that used by Dusenberry, Eckstein, and Fromm to study fiscal automatic stabilizers in the 1957-58 recession, was constructed. Our simulation results led us to conclude that there was a substantial reduction in output and employment due to the impact of inflation upon federal personal income tax liability in the 1973-75 recession. We reached a tentative conclusion that the effects of inflation upon output and employment via corporate profits tax liability were negligible. Finally, we concluded that the effects of inflation upon output and employment via unemployment compensation benefits paid were negligible in the recent stagflation.
Title: AUTOMATIC STABILIZERS DURING STAGFLATION.
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Name(s): MCINTIRE, RICHARD MICHAEL.
Florida Atlantic University, Degree grantor
Redman, Milton, Thesis advisor
College of Business
Department of Economics
Type of Resource: text
Genre: Electronic Thesis Or Dissertation
Issuance: monographic
Date Issued: 1978
Publisher: Florida Atlantic University
Place of Publication: Boca Raton, Fla.
Physical Form: application/pdf
Extent: 82 p.
Language(s): English
Summary: This thesis explored the impact of inflation upon fiscal automatic stabilizers during the 1973-75 recession. Our study confined itself to the three main devices purported to stabilize the U.S. economy automatically: (1) federal personal income tax liability, (2) corporate profits tax liability, and (3) unemployment compensation benefits. A recursive model, similar to that used by Dusenberry, Eckstein, and Fromm to study fiscal automatic stabilizers in the 1957-58 recession, was constructed. Our simulation results led us to conclude that there was a substantial reduction in output and employment due to the impact of inflation upon federal personal income tax liability in the 1973-75 recession. We reached a tentative conclusion that the effects of inflation upon output and employment via corporate profits tax liability were negligible. Finally, we concluded that the effects of inflation upon output and employment via unemployment compensation benefits paid were negligible in the recent stagflation.
Identifier: 13919 (digitool), FADT13919 (IID), fau:10744 (fedora)
Collection: FAU Electronic Theses and Dissertations Collection
Note(s): College of Business
Thesis (M.A.)--Florida Atlantic University, 1978.
Subject(s): Economics, Mathematical
United States--Economic conditions--Mathematical models
Held by: Florida Atlantic University Libraries
Persistent Link to This Record: http://purl.flvc.org/fcla/dt/13919
Sublocation: Digital Library
Use and Reproduction: Copyright © is held by the author, with permission granted to Florida Atlantic University to digitize, archive and distribute this item for non-profit research and educational purposes. Any reuse of this item in excess of fair use or other copyright exemptions requires permission of the copyright holder.
Use and Reproduction: http://rightsstatements.org/vocab/InC/1.0/
Owner Institution: FAU
Is Part of Series: Florida Atlantic University Digital Library Collections.