000226113 001__ 226113
000226113 005__ 20190415234940.0
000226113 037__ $$aREP_WORK
000226113 245__ $$aAUSTERITY IN THE AFTERMATH OF THE GREAT RECESSION
000226113 260__ $$c2017$$bNBER
000226113 269__ $$a2017
000226113 300__ $$a54
000226113 336__ $$aWorking Papers
000226113 520__ $$aWe examine austerity in advanced economies since the Great Recession. Austerity shocks are reductions in government purchases that exceed reduced-form forecasts. Austerity shocks are statistically associated with lower real GDP, lower inflation and higher net exports. We estimate a cross-sectional multiplier of roughly 2. A multi-country DSGE model calibrated to 29 advanced economies generates a multiplier consistent with the data. Counterfactuals suggest that eliminating austerity would have substantially reduced output losses in Europe. Austerity shocks were sufficiently contractionary that debt-to-GDP ratios in some European countries increased as a consequence of endogenous reductions in GDP and tax revenue
000226113 700__ $$g271437$$aPröbsting, Christian$$0250224
000226113 700__ $$aHouse, Christopher L.
000226113 700__ $$aTesar, Linda L
000226113 8560_ $$fcristina.martinucci@epfl.ch
000226113 909C0 $$xU11431$$0252269$$pSFI-LL
000226113 909CO $$pworking$$pCDM$$ooai:infoscience.tind.io:226113
000226113 917Z8 $$x240885
000226113 937__ $$aEPFL-WORKING-226113
000226113 973__ $$rREVIEWED$$sPUBLISHED$$aOTHER
000226113 980__ $$aREP_WORK