Erschienen in:Arigoni, F., Breznikar, M., Lenarčič, Č., & Maletič, M. 2023. Impact of fiscal measures in response to the COVID-19 pandemic on small-open economies: lessons from Slovenia. Banka Slovenije Working Papers 2023/2
Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments December 16, 2021 erstellt
Beschreibung:
We estimate the impact of the fiscal expansion in response to the COVID-19 outbreak on the Slovene economy via a twofold approach. First, we simulate fiscal shocks in a three-scenario setup using a calibrated large-scale DSGE model. Second, we employ a small-scale VAR model to check the robustness of the theoretical results. The findings suggest a significant response of GDP, private consumption, and imports to fiscal shocks. In particular, the outcomes highlight that a government consumption shock explains the lion’s share of domestic fluctuations, compared to other unanticipated fiscal developments. The main transmission channel is high complementarity between private and government consumption