Fiscal policy and the 'Great Recession' in the euro area
How much did fiscal policy contribute to euro area real GDP growth during the Great Recession? We estimate that discretionary fiscal measures have increased annualized quarterly real GDP growth during the crisis by up to 1.6 percentage points. We obtain our result by using an extended version of the European Central Bank’s New Area-Wide Model with a rich specification of the fiscal sector. A detailed modeling of the fiscal sector and the incorporation of as many as eight fiscal time series appear pivotal for our result. JEL Classification: C11, E32, E62
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- Gunter Coenen & Roland Straub & Mathias Trabandt, 2012.
"Fiscal Policy and the Great Recession in the Euro Area,"
American Economic Review,
American Economic Association, vol. 102(3), pages 71-76, May.
- Coenen, Günter & Straub, Roland & Trabandt, Mathias, 2012. "Fiscal policy and the 'Great Recession' in the euro area," Working Paper Series 1429, European Central Bank.
- Günter Coenen & Roland Straub, 2005.
"Does Government Spending Crowd in Private Consumption? Theory and Empirical Evidence for the Euro Area,"
Wiley Blackwell, vol. 8(3), pages 435-470, December.
- GÃ¼nter Coenen & Roland Straub, 2005. "Does Government Spending Crowd In Private Consumption? Theory and Empirical Evidence for the Euro Area," IMF Working Papers 05/159, International Monetary Fund.
- Coenen, Günter & Straub, Roland, 2005. "Does government spending crowd in private consumption? Theory and empirical evidence for the euro area," Working Paper Series 0513, European Central Bank.
- Eric Leeper & Todd B. Walker & Susan Shu-Chun Yang, 2009.
"Government Investment And Fiscal Stimulus In The Short And Long Runs,"
Caepr Working Papers
2009-011, Center for Applied Economics and Policy Research, Economics Department, Indiana University Bloomington.
- Eric M. Leeper & Todd B. Walker & Shu-Chun Susan Yang, 2009. "Government Investment and Fiscal Stimulus in the Short and Long Runs," NBER Working Papers 15153, National Bureau of Economic Research, Inc.
- Eric M. Leeper & Todd B. Walker & Shu-Chun Susan Yang, 2011. "Foresight and Information Flows," NBER Working Papers 16951, National Bureau of Economic Research, Inc.
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