EconPapers    
Economics at your fingertips  
 

Fiscal Policy in an estimated open-economy model for the EURO area

Marco Ratto (), Roeger Werner and Veld Jan
Additional contact information
Roeger Werner: Eurepean Commission, DG ECFIN
Veld Jan: European Commission, DG ECFIN

Authors registered in the RePEc Author Service: Jan in 't Veld

No 43, Computing in Economics and Finance 2006 from Society for Computational Economics

Abstract: This paper presents an open economy DSGE model, which is estimated on a euro area data set using Bayesian techniques. It extents current models by allowing for a detailed empirical analysis of fiscal stabilisation policies. Reaction functions for expenditure categories are estimated in order to measure the extent of the fiscal response of various expenditure categories and to determine the lags of fiscal policy. On the revenue side we use the OECD tax elasticities. Our paper has three objectives: On the methodological side we are interested how much the addition of fiscal policy improves the fit of the DSGE model. The economic issues we explore are first, what has been the contribution of fiscal policy to stabilize the euro area economy? And second, what has been the size of fiscal shocks and how much have they increased the volatility of GDP growth and inflation in the euro area

Keywords: DSGE Models; Fiscal Policy (search for similar items in EconPapers)
JEL-codes: C13 E12 E62 (search for similar items in EconPapers)
Date: 2006-07-04
New Economics Papers: this item is included in nep-cba, nep-dge, nep-eec, nep-mac and nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15) Track citations by RSS feed

Downloads: (external link)
http://www.jrc.cec.eu.int/uasa/doc/CEF2006/ratto_et_al_fiscal.pdf main text (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to www.jrc.cec.eu.int:80 (No such host is known. )

Related works:
Working Paper: Fiscal policy in an estimated open-economy model for the Euro area (2007) 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:sce:scecfa:43

Access Statistics for this paper

More papers in Computing in Economics and Finance 2006 from Society for Computational Economics Contact information at EDIRC.
Bibliographic data for series maintained by Christopher F. Baum ().

 
Page updated 2021-10-14
Handle: RePEc:sce:scecfa:43