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We present the estimated large-scale three-region DSGE model GEAR picturing Germany, the Euro Area and the Rest of the world. Compared to existing models of this type, GEAR incorporates a comprehensive fiscal block, involuntary unemployment and a complex international structure. We use the model...
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Fiscal spending multiplier calculations have been revived in the aftermath of the global financial crisis. Much of the … current literature is based on VAR estimation methods and DSGE models. The aim of this paper is not a further deepening of … multiplier for EU members. Multipliers for specific spending categories are comparably high, ranging between 1.4 and 1.8 for many …
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