Fiscal policy and the Great Recession in the Euro Area

By Guenter Coenen, Roland Straub, Mathias Trabandt. Social Science Research Network, 2012

138 citations recorded by the source corpus.

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

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/801d0b5c974bc8f0cee7429bc30a01d2a391414e

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Economics and Econometrics

1. V. Ramey
2. Mark W. Watson
3. James H. Stock
4. Robert J. Barro
5. Mikkel Plagborg-Møller
6. Karel Mertens
7. Morten O. Ravn
8. Regis Barnichon

In Finance

1. V. Ramey
2. Mikkel Plagborg-Møller
3. M. Lenza
4. Pascal Paul
5. P. Andrade
6. Jiří Slačálek
7. Filippo Ferroni
8. Matteo Iacoviello

Citations in the corpus

• The Macroeconomic Consequences of Infrastructure Investment (2020, result): “Coenen, Straub, and Trabandt (2013) conduct an analysis in the ECB model with a richer fiscal sector and the range for their multipliers in the short run and long run are similar to those of Coenen et al. (2012).”