IGEM: A Dynamic General Equilibrium Model for Italy

Annicchiarico, Barbara; Di Dio, Fabio; Felici, Francesco; Monteforte, Libero

IGEM: A Dynamic General Equilibrium Model for Italy

Government of the Italian Republic (Italy), Ministry of Economy and Finance, Department of the Treasury Working Paper No. 4

58 Pages Posted: 11 Apr 2013

See all articles by Barbara Annicchiarico

Barbara Annicchiarico

University of Rome, Tor Vergata - Department of Economics and Finance; University of Rome Tor Vergata - Centre for International Studies on Economic Growth (CEIS)

Francesco Felici

Government of the Italian Republic (Italy) - Ministry of Economy and Finance - Department of the Treasury

Libero Monteforte

Bank of Italy

Date Written: April 4, 2013

Abstract

This paper provides a full technical account of the Italian General Equilibrium Model (IGEM), a new dynamic general equilibrium model for the Italian economy developed at the Department of Treasury of the Italian Ministry of the Economy and Finance. IGEM integrates typical New Keynesian elements, such as imperfect competition and nominal rigidities, into a general equilibrium framework. One of the key features of the model is the detailed representation of the labor market, designed to capture the dualism of the Italian economic system. The new model will serve as a laboratory for policy analysis.

Keywords: Dynamic General Equilibrium Model, Simulation Analysis, Italy

JEL Classification: E27, E30, E60

Suggested Citation: Suggested Citation

Annicchiarico, Barbara and Di Dio, Fabio and Felici, Francesco and Monteforte, Libero, IGEM: A Dynamic General Equilibrium Model for Italy (April 4, 2013). Government of the Italian Republic (Italy), Ministry of Economy and Finance, Department of the Treasury Working Paper No. 4. Available at SSRN: https://ssrn.com/abstract=2247938