Arbeitspapier

Extraordinary Measures: The Role of Debt Levels in Fiscal Policy Responses to Covid-19

We use SVAR models for 18 economies to estimate how much fiscal policy deviated from pre-pandemic norms during the Covid-19 pandemic. For most countries, fiscal policy was more expansive than the pre-pandemic norm predicts based on the state of the economy during the pandemic. The size of the deviation from the pre-pandemic norm is not related to the level of government debt on the eve of the pandemic, as fiscal space concepts would predict.

Language
Englisch

Bibliographic citation
Series: CESifo Working Paper ; No. 10852

Classification
Wirtschaft
Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook: General
National Government Expenditures and Related Policies: General
Econometric Modeling: General
Subject
Covid-19
fiscal policy
SVAR
fiscal space

Event
Geistige Schöpfung
(who)
Elbourne, Adam
Piccillo, Giulia
Velentzas, Konstantinos
Event
Veröffentlichung
(who)
Center for Economic Studies and ifo Institute (CESifo)
(where)
Munich
(when)
2023

Handle
Last update
10.03.2025, 11:41 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Elbourne, Adam
  • Piccillo, Giulia
  • Velentzas, Konstantinos
  • Center for Economic Studies and ifo Institute (CESifo)

Time of origin

  • 2023

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