Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/309416.2 
Year of Publication: 
2025
Series/Report no.: 
IWH Discussion Papers No. 1/2025
Version Description: 
This version: 27.10.2025
Publisher: 
Halle Institute for Economic Research (IWH), Halle (Saale)
Abstract: 
We study the aggregate, distributional, and welfare effects of fiscal policy responses to Germany’s energy crisis arising in 2022 using a novel ten-agent new Keynesian (TENK) model. The crisis, compounded by the COVID-19 pandemic, led to sharp price increases and significant consumption disparities. Our model, calibrated to Germany’s income and consumption distribution, evaluates key policy interventions. We find that untargeted transfers had the largest short-term aggregate impact, while targeted transfers for lower-income households were most costeffective. Other instruments yielded comparably limited welfare gains. The results highlight how targeted fiscal measures can address distributional effects and stabilize consumption during crises.
Subjects: 
DGE
energy crisis
fiscal policy
income distribution
TENK
JEL: 
E21
E62
Q43
Q48
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

Files in This Item:
File
Size




Version History
Version Item Summary
2 10419/309416.2 This version: 27.10.2025
1 10419/309416 First version: 21.01.2025

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.