Fiscal Policy in a DSGE framework

General DSGE Modeling
1

Hi there

Could anyone please point out to a good example with a simple fiscal authority, isseuing bond and some sort of taxation(either distortionary or lump sum)?

some suggestions would greatly help me.

Many thanks

2

Graduate Macro Theory II: Fiscal Policy in the RBC Model Eric Sims University of Notre Dame

3

I have tried to look for this, it cant be found.
I also have a question, can anyone help me find dynare codes/replicates on any paper on fiscal policy and output? please please

4

Johannes Pfeifer has a simple RBC model with government spending shocks (RBC_baseline.mod, on his Github page). Another one that comes to mind is Ilori, Paez-Farrell and Thoenissen, EER 2022 (Fiscal policy shocks and international spillovers - ScienceDirect). The codes can be found in that link but it may be a richer model than what you need.

5

Or paste the following in google. “Graduate Macro Theory II: Fiscal Policy in the RBC Model Eric Sims University of Notre Dame”

6

Oh thank you so much.
Any help or codes on similar topics will be greatly appreciated as well, thank you again.

7

Hi! Did you mange to find some replication code for government expenditure? Im also working on a similar project and I would appreciate your help. thanks

8

Hi, I also would recommend the following

  1. Coenen, Gunter, Roland Straub and Mathias Trabandt. 2013. “Gauging the Effects of Fiscal Stimulus Packages in the Euro Area”. Paper and codes are available in the website of Mathias Trabandt. https://www.mathiastrabandt.com/research.
    They “estimate an extended version of the ECB’s New Area-Wide Model with a richly specified fiscal sector.”

  2. Coenen, Gunter, Roland Straub and Mathias Trabandt. 2013. “Fiscal Policy and the Great Recession in the Euro Area”.
    They also use “an extended version of the European Central Banks New Area-Wide Model with a rich specification of the fiscal sector.” Paper is available in the website of Mathias Trabandt.

  3. Coenen, Günter, Christopher J. Erceg, Charles Freedman, Davide Furceri, Michael Kumhof, René Lalonde, Douglas Laxton, Jesper Lindé, Annabelle Mourougane, Dirk Muir, Susanna Mursula, Carlos de Resende, John Roberts, Werner Roeger, Stephen Snudden, Mathias Trabandt, and Jan in’t Veld. 2010. “Effects of Fiscal Stimulus in Structural Models”.
    There “Six institutions participated in this project using seven structural models - the European Commission (QUEST), the International Monetary Fund (GIMF), the Board of Governors of the Federal Reserve System (with two models, FRB-US and SIGMA), the Bank of Canada (BoC-GEM), the European Central Bank (NAWM), and the OECD (OECD Fiscal). Of the seven models, four are global (BoC-GEM, GIMF, QUEST and SIGMA), NAWM is a two-region model (United States and the euro area), FRB-US is a U.S. only model, and OECD Fiscal is a euro-area-only model. Six of the models are dynamic stochastic general equilibrium (DSGE) models, while FRB-US is based on the polynomial adjustment cost (PAC) framework.” Paper and codes are available in the website of Mathias Trabandt.