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Extending the Public Sector in the ICES Model with an Explicit Government Institution

Author

Listed:
  • Elisa Delpiazzo

    (Centro Euro-Mediterraneo sui Cambiamenti Climatici)

  • Ramiro Parrado

    (Fondazione Eni Enrico Mattei and Centro Euro-Mediterraneo sui Cambiamenti Climatici)

  • Gabriele Standardi

    (Fondazione Eni Enrico Mattei and Centro Euro-Mediterraneo sui Cambiamenti Climatici)

Abstract

This paper aims to present an extension of the ICES model to capture the public sector. Departing from a demand system mainly derived from the GTAP model, ICES-XPS model disentangles the private and the public actors. The paper reviews the changes in both the database and the model equations following the existing literature and considering the availability of data as well. The model is then tested with a series of simple experiments to highlight its contribution to economic analysis in which the public sector may play an important role. Finally, we show the flexibility in the closure rule of the public sector that allows addressing different policy research questions.

Suggested Citation

  • Elisa Delpiazzo & Ramiro Parrado & Gabriele Standardi, 2017. "Extending the Public Sector in the ICES Model with an Explicit Government Institution," Working Papers 2017.11, Fondazione Eni Enrico Mattei.
    • Handle: RePEc:fem:femwpa:2017.11
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    References listed on IDEAS

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    More about this item

    Keywords

    Computable General Equilibrium; Public Sector; Government Budget;
    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
    • H60 - Public Economics - - National Budget, Deficit, and Debt - - - General

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