Bayer, Christian; Kriwoluzky, Alexander; Müller, Gernot J. - 2023
/Slutsky compensation are less effective domestically as subsidies but do not harm economic activity abroad. In addition, transfers increase … alternative fiscal responses in a two-country HANK model that we calibrate to the euro area. Energy subsidies can stabilize the … subsidizing country gains, the other countries lose. Transfers based on historical energy consumption in the form of a Hicks …