Impact of Fiscal Measures in Response to the COVID-19 Pandemic on Small-Open Economies: Lessons from Slovenia

Filippo Arigoni (), Miha Breznikar (), Črt Lenarčič and Matjaž Maletič ()
Additional contact information
Filippo Arigoni: Central Bank of Ireland
Miha Breznikar: European Central Bank
Matjaž Maletič: Banka Slovenije

Eastern Economic Journal, 2025, vol. 51, issue 4, No 2, 553-582

Abstract: Abstract We assess the economic impact of the fiscal expansion in response to the COVID-19 pandemic, using Slovenia as a representative small-open economy and calibrate a large-scale DSGE model by closely matching the estimated fiscal multipliers. A simulated three-scenario fiscal expansion analysis documents that a government consumption shock explains a large part of domestic fluctuations, compared to other unanticipated fiscal developments. The results also highlight the role played by private-government consumption complementarity as key transmission channel of fiscal shocks on the real business cycle.

Keywords: Fiscal shocks; COVID-19 crisis; Fiscal multipliers; DSGE model; VAR model (search for similar items in EconPapers)
JEL-codes: C32 E32 E62 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1057/s41302-025-00301-z Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Impact of fiscal measures in response to the COVID-19 pandemic on small-open economies: lessons from Slovenia (2020)
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:pal:easeco:v:51:y:2025:i:4:d:10.1057_s41302-025-00301-z

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/41302

DOI: 10.1057/s41302-025-00301-z

Access Statistics for this article

Eastern Economic Journal is currently edited by Allan Zebedee and Cynthia Bansak

More articles in Eastern Economic Journal from Palgrave Macmillan, Eastern Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().