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Replication data for: The Empirical Implications of the Interest-Rate Lower Bound

Resource Type
  • Gust, Christopher
  • Herbst, Edward
  • López-Salido, David
  • Smith, Matthew E.
Publication Date
  • Abstract

    Using Bayesian methods, we estimate a nonlinear DSGE model in which the interest-rate lower bound is occasionally binding. We quantify the size and nature of disturbances that pushed the US economy to the lower bound in late 2008 as well as the contribution of the lower bound constraint to the resulting economic slump. We find that the interest-rate lower bound was a significant constraint on monetary policy that exacerbated the recession and inhibited the recovery, as our mean estimates imply that the zero lower bound (ZLB) accounted for about 30 percent of the sharp contraction in US GDP that occurred in 2009 and an even larger fraction of the slow recovery that followed.
  • Is supplement to
    DOI: 10.1257/aer.20121437 (Text)
  • Gust, Christopher, Edward Herbst, David López-Salido, and Matthew E. Smith. “The Empirical Implications of the Interest-Rate Lower Bound.” American Economic Review 107, no. 7 (July 2017): 1971–2006.
    • ID: 10.1257/aer.20121437 (DOI)

Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-10-12

Gust, Christopher; Herbst, Edward; López-Salido, David; Smith, Matthew E. (2017): Replication data for: The Empirical Implications of the Interest-Rate Lower Bound. Version: V0. ICPSR - Interuniversity Consortium for Political and Social Research. Dataset.