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| Riccardo Tilli, Paolo D'Imperio and Cristiana Fiorelli |
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| ''Fiscal policy response to the COVID-19 pandemic in the euro area'' |
| ( 2023, Vol. 43 No.1 ) |
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| We estimate the macroeconomic impact of fiscal measures adopted in response to the COVID-19 crisis at the euro area level. Given the multitude of shocks occurred simultaneously during the pandemic, the fiscal stimulus is identified together with other supply- and demand-side shocks using a sign and zero restricted Bayesian vector autoregressive (VAR) model. Our results suggest that fiscal policy measures avoided a further collapse of GDP equal to 3.7 percentage points during the two years 2020-2021. |
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| Keywords: Fiscal policy, VAR, Covid-19 |
JEL: E3 - Prices, Business Fluctuations, and Cycles: General (includes Measurement and Data)
E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General |
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| Manuscript Received : Oct 31 2022 | | Manuscript Accepted : Mar 30 2023 |
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