shock. We also find that the bulk of fiscal adjustment takes place via a rise in government revenue rather than a cut in …-to-GDP ratio from rising as a consequence of the shock. Sub-dividing our sample, we also find that for countries participating in … Economic and Monetary Union (EMU) the primary balance response to a cost of borrowing shock was stronger in the period after …

percentage points over 10 years, with the fiscal response becoming significantly evident only two years after the shock. We also … from rising as a consequence of the shock. Sub-dividing our sample, we also find that for countries participating in … Economic and Monetary Union (EMU) the primary balance response to a cost of borrowing shock was stronger in the period after …

due to a fiscal policy shock, as compared to when the rise in output is due to a positive technology shock. The cross ….75 when the rise in output follows from a favorable output shock …

due to a fiscal policy shock, as compared to when the rise in output is due to a positive technology shock. The cross ….75 when the rise in output follows from a favorable output shock. …

policy shocks. We find that controlling for the business cycle shock is important, but controlling for the monetary policy … shock is not, that government spending shocks crowd out both residential and non-residential investment but do not reduce …

endogenous central bank reaction to a contractionary demand shock as in Christiano, Eichenbaum, Rebelo (2011) and the ZLB modeled … as an exogenous monetary shock as in Cogan, Cwik, Taylor, Wieland (2010). We find that only the former treat the ZLB as …