Covid-19 fiscal support and its effectiveness

Alexander Chudik, Kamiar Mohaddes and Mehdi Raissi

CAMA Working Papers from Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University

Abstract: This paper uses a threshold-augmented Global VAR model to quantify the macroeconomic effects of countries’ discretionary fiscal actions in response to the Covid-19 pandemic and its fallout. Our results are threefold: (1) fiscal policy is playing a key role in mitigating the effects of the pandemic; (2) all else equal, countries that implemented larger fiscal support are expected to experience less output contractions; (3) emerging markets are also benefiting from the synchronized fiscal actions globally through the spillover channel and reduced financial market volatility.

Keywords: TGVAR; Covid-19; threshold effects; fiscal policy (search for similar items in EconPapers)
JEL-codes: C32 E44 E62 F44 (search for similar items in EconPapers)
Pages: 13 pages
Date: 2021-03
New Economics Papers: this item is included in nep-eec and nep-mac
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Citations: View citations in EconPapers (19)

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https://cama.crawford.anu.edu.au/sites/default/fil ... mohaddes_raissi1.pdf (application/pdf)

Related works:
Journal Article: Covid-19 fiscal support and its effectiveness (2021)
Working Paper: Covid-19 Fiscal Support and its Effectiveness (2021)
Working Paper: COVID-19 Fiscal Support and Its Effectiveness (2021)
Working Paper: COVID-19 Fiscal Support and Its Effectiveness (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:een:camaaa:2021-28

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