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IGEM-PA: a Variant of the Italian General Equilibrium Model for Policy Analysis

Author

Listed:
  • Barbara Annicchiarico
  • Claudio Battiati
  • Claudio Cesaroni
  • Fabio Di Dio
  • Francesco Felici

Abstract

This paper extends IGEM, the dynamic general equilibrium model for the Italian economy currently in use at the Italian Department of the Treasury for economic policy analysis. In this new variant of the model the public sector is explicitly modelled as suppliers of goods and services. With this tool in hand we are able to present an in-depth analysis of expenditure-based fiscal multipliers and ameliorate our understanding of the potential macroeconomic effects of several policy interventions,such as those aimed at the rationalization of public spending, at the improvement of the business environment and at fostering productivity of the public administration (PA).

Suggested Citation

  • Barbara Annicchiarico & Claudio Battiati & Claudio Cesaroni & Fabio Di Dio & Francesco Felici, 2017. "IGEM-PA: a Variant of the Italian General Equilibrium Model for Policy Analysis," Working Papers 2, Department of the Treasury, Ministry of the Economy and of Finance.
    • Handle: RePEc:itt:wpaper:wp2017-2
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    More about this item

    Keywords

    Structural Reforms; Dynamic General Equilibrium Model; Italy; Public Administration Fiscal Multipliers; Simulation Analysis;
    All these keywords.

    JEL classification:

    • E27 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Forecasting and Simulation: Models and Applications
    • E30 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - General (includes Measurement and Data)
    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General

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