FISCAL SHOCKS AND THE REACTION OF AUTOMATIC STABILIZERS

Investigation of the fiscal policy effects generates comprehensive dispute given the scientific importance of understanding the mechanisms by which governments interventions operate and interact throughout the economy. In addition, should not be overlooked that the effects of fiscal policies are considered in the literature that results shocks. In this case, temporary shocks caused by business cycles should be corrected by automating stabilizers. This requires proper functioning of the automate stabilizers. It is therefore useful the scientific approach proposed in this paper to analyze the fiscal policy shocks and the mechanism through which the automatic stabilizers react to them.