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Public policies over the life cycle: a large scale OLG model for France, Italy and Sweden

Author

Listed:
  • Alessandro Bucciol

    () (Department of Economics (University of Verona))

  • Laura Cavalli

    () (Department of Economics (University of Verona))

  • Igor Fedotenkov

    () (Department of Economics (University of Verona))

  • Paolo Pertile

    () (Department of Economics (University of Verona))

  • Veronica Polin

    () (Department of Economics (University of Verona))

  • Nicola Sartor

    () (Department of Economics (University of Verona))

  • Alessandro Sommacal

    () (Department of Economics (University of Verona))

Abstract

The paper presents a large scale overlapping generation model with heterogeneous agents, where the family is the decision unit. We calibrate the model for three European countries - France, Italy and Sweden - which show marked differences in the design of some public programs. We examine the properties in terms of annual and lifetime redistribution of a number of tax-benefit programs, by studying the impact of removing from our model economies some or all of them. We find that whether one considers a life-cycle or an annual horizon, and whether behavioral responses are accounted for or not, has a large impact on the results. The model may provide useful insights for policy makers on which kind of reforms are more likely to achieve specific equity objectives.

Suggested Citation

  • Alessandro Bucciol & Laura Cavalli & Igor Fedotenkov & Paolo Pertile & Veronica Polin & Nicola Sartor & Alessandro Sommacal, 2015. "Public policies over the life cycle: a large scale OLG model for France, Italy and Sweden," Working Papers 29/2015, University of Verona, Department of Economics.
  • Handle: RePEc:ver:wpaper:29/2015
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    References listed on IDEAS

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    Cited by:

    1. Bucciol, Alessandro & Cavalli, Laura & Fedotenkov, Igor & Pertile, Paolo & Polin, Veronica & Sartor, Nicola & Sommacal, Alessandro, 2017. "A large scale OLG model for the analysis of the redistributive effects of policy reforms," European Journal of Political Economy, Elsevier, vol. 48(C), pages 104-127.
    2. Michele Catalano & Emilia Pezzolla, 2016. "The effects of education and aging in an OLG model: long-run growth in France, Germany and Italy," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 43(4), pages 757-800, November.

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    More about this item

    Keywords

    Redistribution; Fiscal policy; Computable OLG models;
    All these keywords.

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents

    NEP fields

    This paper has been announced in the following NEP Reports:

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