EconPapers    
Economics at your fingertips  
 

The Macroeconomics of the Greek Depression

Gabriel Chodorow-Reich, Loukas Karabarbounis and Rohan Kekre

American Economic Review, 2023, vol. 113, issue 9, 2411-57

Abstract: Greece experienced a boom until 2007, followed by a collapse of unprecedented magnitude and persistence. We assess the sources of the boom and the bust, using a rich estimated dynamic general equilibrium model. External demand and government consumption fueled the boom in production, whereas transfers fueled the boom in consumption. Different from the standard narrative, wages and prices declined substantially during the bust. Tax policy accounts for the largest fraction of the bust in production, whereas uninsurable risk accounts for the bust in consumption and wages. We assess how the composition of fiscal adjustment and bailouts affected the crisis.

JEL-codes: E21 E23 E24 E32 E62 F41 H20 (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.aeaweb.org/doi/10.1257/aer.20210864 (application/pdf)
https://www.aeaweb.org/doi/10.1257/aer.20210864.appx (application/pdf)
https://www.aeaweb.org/doi/10.1257/aer.20210864.ds (application/zip)
Access to full text is restricted to AEA members and institutional subscribers.

Related works:
Working Paper: The Macroeconomics of the Greek Depression (2019) Downloads
Working Paper: The Macroeconomics of the Greek Depression (2019) Downloads
Working Paper: The Macroeconomics of the Greek Depression (2019) Downloads
Working Paper: The Macroeconomics of the Greek Depression (2019) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aea:aecrev:v:113:y:2023:i:9:p:2411-57

Ordering information: This journal article can be ordered from
https://www.aeaweb.org/journals/subscriptions

DOI: 10.1257/aer.20210864

Access Statistics for this article

American Economic Review is currently edited by Esther Duflo

More articles in American Economic Review from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().

 
Page updated 2024-12-09
Handle: RePEc:aea:aecrev:v:113:y:2023:i:9:p:2411-57