Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/175461
Authors: 
Albonico, Alice
Tirelli, Patrizio
Paccagnini, Alessia
Year of Publication: 
2016
Series/Report no.: 
Working Paper Series 16/02
Abstract: 
This paper reconsiders the role of macroeconomic shocks and policies in determining the Great Recession and the subsequent recovery in the US. The Great Recession was mainly caused by a large demand shock and by the ZLB on the interest rate policy. In contrast with previous findings, the subsequent jobless recovery is explained by the ZLB effect. We estimate a fraction of non-Ricardian households which is close to 50%, and obtain comparatively large fiscal multipliers. However we cannot detect a signi.cant contribution of fiscal policies in stabilizing the US economy. For instance, the 2007-2009 large increase in expenditure-to- GDP ratios was apparently determined by the adverse non-policy shocks that caused the recession.
Subjects: 
DSGE
Limited Asset Market Participation
Bayesian Estimation
US Economy
Business Cycle
Monetary Policy
Fiscal Policy
JEL: 
C11
C13
C32
E21
E32
E37
Document Type: 
Working Paper

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