Stähler, Nikolai; Thomas, Carlos - Banco de España - 2011
Area, we calibrate the model to Spain and the rest of the area and simulate a number of fiscal consolidation scenarios. We … find that, in terms of output and employment losses, fiscal consolidation is the least damaging when achieved by reducing …This paper develops a medium-scale dynamic, stochastic, general equilibrium (DSGE) model for fiscal policy simulations …