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The Multisector Applied Computable General Equilibrium Model for Italian Economy (MACGEM-IT)

Author

Listed:
  • Claudio Socci

    (Università di Macerata)

  • Francesco Felici

    (Ministero dell’Economia e delle Finanze)

  • Rosita Pretaroli

    (Università di Macerata)

  • Francesca Severini

    (Università di Macerata)

  • Renato Loiero

    (Senato della Repubblica)

Abstract

The continuous evolution of the institutional and regulatory framework requires the development of analysis instruments able to support the policy maker in designing and evaluating the impact of specific policy measures for the achievement of selected targets. With this intent, the MACGEM-IT model is developed to measure the aggregate and disaggregated, direct and indirect impacts of economic policy proposals within the economic system. Specifically built to reflect the characteristics of Italian economy, MACGEM-IT is a multi-input, multi-output and multi-sector static CGE model calibrated on the Social Accounting Matrix for Italy. It incorporates rigidities on prices, market imperfections and specific constraints on the behaviour of selected institutional sectors. The capability of the model to track the transmission mechanisms of policy measures and identify their direct, indirect and induced effects in the economy, is tested through a set of fiscal policy simulations.

Suggested Citation

  • Claudio Socci & Francesco Felici & Rosita Pretaroli & Francesca Severini & Renato Loiero, 2021. "The Multisector Applied Computable General Equilibrium Model for Italian Economy (MACGEM-IT)," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 7(1), pages 109-127, March.
    • Handle: RePEc:spr:italej:v:7:y:2021:i:1:d:10.1007_s40797-020-00127-y
    DOI: 10.1007/s40797-020-00127-y
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    More about this item

    Keywords

    CGE; SAM; Fiscal policy; Impact analysis;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • E16 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Social Accounting Matrix
    • E17 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Forecasting and Simulation: Models and Applications
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General

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