Politicians, scientists and journalists have aired vastly different assessments of the COVID-19 pandemic, ranging from rather optimistic to very pessimistic ones. In this paper we investigate how narratives conveying different assessments of the pandemic impact economic behavior. In a controlled...

Corporate investment in Germany has been relatively weak for a prolonged period after the financial crisis. This was remarkable given that interest rates and overall economic activity, important determinants of corporate investment, developed quite favourably during that time. These developments...

Using a novel rich dataset at the regional level, this paper provides new empirical evidence on the €fiscal transmission mechanism in the Eurozone. Our baseline estimates reveal a government spending relative output multiplier of 2.9, an employment multiplier of 1.9, and a cost per job...