Fiscal Policy in an Estimated Open-economy Model for the Euro Area - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Fiscal Policy in an Estimated Open-economy Model for the Euro Area write by Marco Ratto. This book was released on 2006. Fiscal Policy in an Estimated Open-economy Model for the Euro Area available in PDF, EPUB and Kindle. Recoge: Introduction - 1. The Model - 2. Estimation - 3. Assessing the Role of Fiscal Policy - 4. Conclusion.
Fiscal Policy in an Estimated Open-economy Model for the Euro Area
Fiscal Policy in an Estimated Open-economy Model for the Euro Area - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Fiscal Policy in an Estimated Open-economy Model for the Euro Area write by . This book was released on 2006. Fiscal Policy in an Estimated Open-economy Model for the Euro Area available in PDF, EPUB and Kindle. This paper uses an estimated DSGE model for the euro area to study the effects of fiscal stabilisation policies. There are at least two features of the euro area economy which makes this analysis interesting. First, there are nominal rigidities in goods and labour markets, and there are financial market frictions with a significant share of liquidity constrained households. Second, the government is a major sector of the euro area economy. In this paper we look at fiscal stabilisation via government consumption, investment, transfers and wage taxes. Empirical evidence is found for systematic countercyclical fiscal policy. Consistent with previous findings, there is a small positive fiscal multiplier in the case of transitory fiscal shocks. It is found that fiscal policy is effective in stabilising GDP in the presence of demand and supply shocks. Fiscal policy helps to reduce the demand externality arising from nominal rigidities. In addition automatic stabilisation via government transfers helps to smooth consumption of liquidity constrained household. Fiscal policy partly compensates the financial market distortion. With distorted goods, labour and financial markets it is found that the estimated fiscal policy rules reduce fluctuations in euro area GDP by about 14 percent.
Fiscal Policy in an Estimated Open-economy Model for the Euro Area
Fiscal Policy in an Estimated Open-economy Model for the Euro Area - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Fiscal Policy in an Estimated Open-economy Model for the Euro Area write by . This book was released on 2011. Fiscal Policy in an Estimated Open-economy Model for the Euro Area available in PDF, EPUB and Kindle.
Fiscal Policy in an Estimated Open-economy Model for the Euro Area
Fiscal Policy in an Estimated Open-economy Model for the Euro Area - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Fiscal Policy in an Estimated Open-economy Model for the Euro Area write by . This book was released on 2011. Fiscal Policy in an Estimated Open-economy Model for the Euro Area available in PDF, EPUB and Kindle.
The Euro-Area Government Spending Multiplier at the Effective Lower Bound
The Euro-Area Government Spending Multiplier at the Effective Lower Bound - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook The Euro-Area Government Spending Multiplier at the Effective Lower Bound write by Adalgiso Amendola. This book was released on 2019-06-28. The Euro-Area Government Spending Multiplier at the Effective Lower Bound available in PDF, EPUB and Kindle. We build a factor-augmented interacted panel vector-autoregressive model of the Euro Area (EA) and estimate it with Bayesian methods to compute government spending multipliers. The multipliers are contingent on the overall monetary policy stance, captured by a shadow monetary policy rate. In the short run (one year), whether the fiscal shock occurs when the economy is at the effective lower bound (ELB) or in normal times does not seem to matter for the size of the multiplier. However, as the time horizon increases, multipliers diverge across the two regimes. In the medium run (three years), the average multiplier is about 1 in normal times and between 1.6 and 2.8 at the ELB, depending on the specification. The difference between the two multipliers is distributed largely away from zero. More generally, the multiplier is inversely correlated with the level of the shadow monetary policy rate. In addition, we verify that EA data lend support to the view that the multiplier is larger in periods of economic slack, and we show that the shadow rate and the state of the business cycle are autonomously correlated with its size. The econometric approach deals with several technical problems highlighted in the empirical macroeconomic literature, including the issues of fiscal foresight and limited information.
