Erceg, Christopher J.; Guerrieri, Luca; Gust, Christopher - Federal Reserve Board (Board of Governors of the … - 2005
In this paper, we use an open economy DGE model (SIGMA) to assess the quantitative effects of fiscal shocks on the … trade balance in the United States. We examine the effects of two alternative fiscal shocks: a rise in government … effect on the U.S. trade balance, irrespective of whether the source is a spending increase or tax cut. In our benchmark …