Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/153862
Authors: 
Coenen, Günter
Straub, Roland
Trabandt, Mathias
Year of Publication: 
2012
Series/Report no.: 
ECB Working Paper 1429
Abstract: 
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.
Subjects: 
Bayesian inference
DSGE modelling
euro area
JEL: 
C11
E32
E62
Document Type: 
Working Paper

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