Riassunto analitico
In the wake of the Great Recession, the unemployment rate of Greece, Ireland, Italy, Portugal and Spain has struggled to return to pre-crisis levels. This dynamics has occured in concomitance with the severe austerity measures implemented in the Euro Area periphery countries. Is there a link between the fiscal adjustments adopted and the movement disclosed by the unemployment rate?In order to answer this question, recourse to the structural VAR approach has been made. In particular, have been recovered shocks to different government spending components, estimating the corresponding unemployment fiscal multipliers. Furthermore, by recovering demand, supply and monetary policy shocks, has been assessed the role that each economic disturbance plays in explaining the unemployment rate fluctuations at various time horizons.
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Abstract
In the wake of the Great Recession, the unemployment rate of Greece, Ireland, Italy, Portugal and Spain has struggled to return to pre-crisis levels. This dynamics has occured in concomitance with the severe austerity measures implemented in the Euro Area periphery countries. Is there a link between the fiscal adjustments adopted and the movement disclosed by the unemployment rate?In order to answer this question, recourse to the structural VAR approach has been made. In particular, have been recovered shocks to different government spending components, estimating the corresponding unemployment fiscal multipliers. Furthermore, by recovering demand, supply and monetary policy shocks, has been assessed the role that each economic disturbance plays in explaining the unemployment rate fluctuations at various time horizons.
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