This setting lets you change the way you view articles. You can choose to have articles open in a dialog window, a new tab, or directly in the same window.
Open in Dialog
Open in New Tab
Open in same window

American Economic Review: Vol. 102 No. 3 (May 2012)

AER Volume. 102, Issue 3 | leftPrevious ArticleNext Articleright

Expand

Quick Tools:

Print Article Summary Email Link to this Article Export Citation
Sign up for Email Alerts Follow us on Twitter

Explore:

AER - All Issues

AER Forthcoming Articles

Fiscal Policy in a Financial Crisis: Standard Policy versus Bank Rescue Measures

Article Citation

Kollmann, Robert, Werner Roeger, and Jan in't Veld. 2012. "Fiscal Policy in a Financial Crisis: Standard Policy versus Bank Rescue Measures." American Economic Review, 102(3): 77-81.

DOI: 10.1257/aer.102.3.77

Abstract

A key dimension of fiscal policy during the financial crisis was massive government support for the banking system. The macroeconomic effects of that support have, so far, received little attention in the literature. This paper fills this gap, using a quantitative dynamic model with a banking sector. Our results suggest that state aid for banks may have a strong positive effect on real activity. Bank state aid multipliers are in the same range as conventional fiscal spending multipliers. Support for banks has a positive effect on investment, while a rise in government purchases crowds out investment.

Article Full-Text Access

Full-text Article

Authors

Kollmann, Robert (ECARES, Free U Brussels and U Paris, Est Creteil Val-de-Marne)
Roeger, Werner (DG-ECFIN)
in't Veld, Jan (DG-ECFIN)

JEL Classifications

E44: Financial Markets and the Macroeconomy
E62: Fiscal Policy
E32: Business Fluctuations; Cycles
F44: International Business Cycles
G01: Financial Crises


American Economic Review



AEA Member Login:


Quick Tools:

Email Link to this Issue

Sign up for Email Alerts

Follow us on Twitter

Subscription Information
(Institutional Administrator Access)

Explore:

AER - All Issues

AER - Forthcoming Articles

AEA Journals

Virtual Field Journals

AEAweb | AEA Journals | Contact Us