Financial and fiscal shocks in the Great Recession and recovery of the Spanish economy

• José E. Boscá Mares ^[1] ; Rafael Domenech ^[1] ; Javier Ferri ^[1] ; Rodolfo Méndez ^[1] ; Juan F. Rubio Ramírez ^[2]
  1. [1] Universitat de València

     Universitat de València

     Valencia, España

     
  2. [2] Emory University

     Emory University

     Estados Unidos

     
• Localización: Documentos de trabajo ( FEDEA ), ISSN 1696-7496, Nº. 5, 2018, págs. 1-62
• Idioma: inglés
• Enlaces
  • Texto completo (pdf)
• Dialnet Métricas: 2 Citas
• Resumen

  • In this paper we develop and estimate a new Bayesian DSGE model for the Spanish economy that has been designed to evaluate different structural reforms. The small open economy model incorporates a banking sector, consumers and entrepreneurs who accumulate debt, and a rich fiscal structure and monopolistic competition in products and labor markets, for a country in a currency union, with no independent monetary policy. The model can be used to evaluate ex-ante and ex-post policies and structural reforms and to decompose the evolution of macroeconomic aggregates according to different shocks. In particular, we estimate the contribution of financial and fiscal shocks to both the crisis of the Great Recession and the recovery of the Spanish economy.