25 Years IWH

Professor Dr Mathias Trabandt

Professor Dr Mathias Trabandt
Current Position

since 4/17

Research Fellow at the Department of Macroeconomics

Halle Institute for Economic Research (IWH) – Member of the Leibniz Association

since 8/15

Professor of Macroeconomics

Freie Universität Berlin

Research Interests

  • applied econometrics
  • labour economics
  • international macroeconomics

Mathias Trabandt is a Research Fellow at the IWH since April 2017. His fields of interest are macroeconomics, monetary economics, public economics, labour economics, international macroeconomics, financial frictions and applied econometrics.

Mathias Trabandt is a Professor of Macroeconomics at the School of Business and Economics at Freie Universität Berlin since August 2015. Before joining the School of Business and Economics, he was Chief of the “Global Modeling Studies Section” at the International Finance Division of the Federal Reserve Board of Governors in Washington D.C. Earlier in his career, Mathias Trabandt also held positions as an economist at the European Central Bank and Deutsche Bundesbank in Frankfurt and at Sveriges Riksbank in Stockholm. He received his PhD in economics from Humboldt University Berlin.

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Professor Dr Mathias Trabandt
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Effects of Fiscal Stimulus in Structural Models

Mathias Trabandt Günter Coenen Christopher J. Erceg Charles Freedman Davide Furceri Michael Kumhof René Lalonde Douglas Laxton Jasper Lindé Annabelle Mourougane Dirk Muir Susanna Mursula Carlos de Resende John Roberts Werner Roeger Stephen Snudden Jan in't Veld

in: American Economic Journal: Macroeconomics , No. 1, 2012


The paper subjects seven structural DSGE models, all used heavily by policymaking institutions, to discretionary fiscal stimulus shocks using seven different fiscal instruments, and compares the results to those of two prominent academic DSGE models. There is considerable agreement across models on both the absolute and relative sizes of different types of fiscal multipliers. The size of many multipliers is large, particularly for spending and targeted transfers. Fiscal policy is most effective if it has moderate persistence and if monetary policy is accommodative. Permanently higher spending or deficits imply significantly lower initial multipliers.

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Fiscal Policy and the Great Recession in the Euro Area

Mathias Trabandt Günter Coenen Roland Straub

in: American Economic Review: Papers and Proceedings , No. 3, 2012


How much did fiscal policy contribute to euro area real GDP growth during the Great Recession? We estimate that discretionary fiscal measures have increased annualized quarterly real GDP growth during the crisis by up to 1.6 percentage points. We obtain our result by using an extended version of the European Central Bank's New Area-Wide Model with a rich specification of the fiscal sector. A detailed modeling of the fiscal sector and the incorporation of as many as eight fiscal time series appear pivotal for our result.

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Gauging the Effects of Fiscal Stimulus Packages in the Euro Area

Mathias Trabandt Roland Straub Günter Coenen

in: Journal of Economic Dynamics and Control , No. 2, 2013


We seek to quantify the impact on euro area GDP of the European Economic Recovery Plan (EERP) enacted in response to the financial crisis of 2008–2009. To do so, we estimate an extended version of the ECB's New Area-Wide Model with a richly specified fiscal sector. The estimation results point to the existence of important complementarities between private and government consumption and, to a lesser extent, between private and public capital. We first examine the implied present-value multipliers for seven distinct fiscal instruments and show that the estimated complementarities result in fiscal multipliers larger than one for government consumption and investment. We highlight the importance of monetary accommodation for these findings. We then show that the EERP, if implemented as initially enacted, had a sizeable, although short-lived impact on euro area GDP. Since the EERP comprised both revenue and expenditure-based fiscal stimulus measures, the total multiplier is below unity.

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