Alexandra Gutsch
Current Position
since 10/20
Economist in the Department of Macroeconomics
Halle Institute for Economic Research (IWH) – Member of the Leibniz Association
Research Interests
- fiscal policy
- DSGE models
Your contact
- Department Macroeconomics
Working Papers
The German Energy Crisis: A TENK-based Fiscal Policy Analysis
in: IWH Discussion Papers, No. 1, 2025
Abstract
We study the aggregate, distributional, and welfare effects of fiscal policy responses to Germany’s energy crisis arising in 2022 using a novel ten-agent new Keynesian (TENK) model. The crisis, compounded by the COVID-19 pandemic, led to sharp price increases and significant consumption disparities. Our model, calibrated to Germany’s income and consumption distribution, evaluates key policy interventions. We find that untargeted transfers had the largest short-term aggregate impact, while targeted transfers for lower-income households were most cost-effective. Other instruments yielded comparably limited welfare gains. The results highlight how targeted fiscal measures can address distributional effects and stabilize consumption during crises.
