EconPapers    
Economics at your fingertips  
 

Debt Hangover in the Aftermath of the Great Recession

Stéphane Auray, Aurélien Eyquem and Paul Gomme ()

No 2017-61, Working Papers from Center for Research in Economics and Statistics

Abstract: Following the Great Recession, U.S. government debt levels exceeded 100% of output. We develop a macroeconomic model to evaluate the role of various shocks during and after the Great Recession; labor market shocks have the greatest impact on macroeconomic activity. We then evaluate the consequences of using alternative fiscal policy instruments to implement a fiscal austerity program to return the debt-output ratio to its pre-Great Recession level. Our welfare analysis reveals that there is not much difference between applying fiscal austerity through government spending, the labor income tax, or the consumption tax; using the capital income tax is welfare-reducing.

New Economics Papers: this item is included in nep-dge and nep-mac
Date: 2017-06-28
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link)
http://crest.science/RePEc/wpstorage/2017-61.pdf CREST working paper version (application/pdf)

Related works:
Journal Article: Debt hangover in the aftermath of the Great Recession (2019) Downloads
Working Paper: Debt Hangover in the Aftermath of the Great Recession (2019)
Working Paper: Debt Hangover in the Aftermath of the Great Recession (2018) Downloads
Working Paper: Debt Hangover in the Aftermath of the Great Recession (2018) Downloads
Working Paper: Debt Hangover in the Aftermath of the Great Recession (2017) Downloads
Working Paper: Debt Hangover in the Aftermath of the Great Recession (2017) Downloads
Working Paper: Debt Hangover in the Aftermath of the Great Recession (2017)
Working Paper: Debt Hangover in the Aftermath of the Great Recession (2017)
Working Paper: Debt Hangover in the Aftermath of the Great Recession (2017)
Working Paper: Debt Hangover in the Aftermath of the Great Recession (2016) Downloads
Working Paper: Debt Hangover in the Aftermath of the Great Recession (2016)
Working Paper: Debt Hangover in the Aftermath of the Great Recession (2016)
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:crs:wpaper:2017-61

Access Statistics for this paper

More papers in Working Papers from Center for Research in Economics and Statistics Contact information at EDIRC.
Bibliographic data for series maintained by Sri Srikandan ().

 
Page updated 2019-10-15
Handle: RePEc:crs:wpaper:2017-61