High-quality infrastructure will boost regional economic development and reduce poverty and income inequality. The spill-over effects created by this high-quality infrastructure will be seen in the form of an increase in gross domestic product and tax revenue in the region. These positive...

In this paper, we use the estimated three-region DSGE model GEAR, which pictures Germany, the Euro Area and the Rest of the world and which is used by the Deutsche Bundesbank for policy analysis, to analyze how discretionary fiscal policy in Germany and the rest of EMU affected GDP growth and...