As part of Germany’s fiscal response to the Covid-19 pandemic, parents received three payments totalling e450 per child. Randomization in the payment dates and daily scanner data allow us to identify the effects of these transfers on household spending. We find a significant but small spending...

Expansions in public spending induce a surge in private consumption that is accompanied by increasing post-tax income of households. Endogenously reacting income, however, is insufficient to rationalize conditional comovement of private and public spending: household expenditures even expand in...

We simulate the fiscal stimulus packages set up by the German government to alleviate the costs of the COVID-19 pandemic in a dynamic New Keynesian multi-sector general equilibrium model. We find that, cumulated over 2020-2022, output losses relative to steady state can be reduced by more than 4...

We investigate the implications of extra-normal government spending under COVID-19 for commercial bank lending growth between 2019Q4 and 2020Q4 in a sample of 3000 banks from 71 countries. We control for pre-pandemic structural factors, bank characteristics and government debt. To address the...

Despite a large body of empirical work analyzing the causal effects of fiscal stimulus on employment in developed countries, little evidence exists in developing economies and evidence from China is scarce. Using the initial share of local industries together with allocated spending announced in...

Motivating with two scenarios in which the government spending in China timely reacted to output shock within a quarter, this letter points out a downward bias in the estimation of Chinese government spending multiplier using the classical lag restriction for shock identification in a quarterly...