Replication data for: Is Government Spending at the Zero Lower Bound Desirable?
- Bilbiie, Florin O.
- Monacelli, Tommaso
- Perotti, Roberto
AbstractWe build a medium-scale DSGE model and calibrate it to fit the main macroeconomic variables during the US Great Recession. Using it to evaluate the welfare effects of increasing government consumption at the zero lower bound beyond what was actually observed in the data, we reach three main results. First, the increase in government consumption after 2008, albeit small in present value terms, was close to optimal. Second, frontloading the same stimulus would have been welfare-improving. Third, larger welfare effects occur in our model for parameter values implying either large welfare costs of modest recessions (e.g., high consumption curvature), or outright large recessions.
Is supplement to
DOI: 10.1257/mac.20150229 (Text)
Bilbiie, Florin O., Tommaso Monacelli, and Roberto Perotti. “Is Government Spending at the Zero Lower Bound Desirable?” American Economic Journal: Macroeconomics 11, no. 3 (July 2019): 147–73. https://doi.org/10.1257/mac.20150229.
- ID: 10.1257/mac.20150229 (DOI)
Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-12-07