Public Policies over the Life Cycle: A Large Scale OLG Model for France, Italy and Sweden

54 Pages Posted: 23 Dec 2015

See all articles by Alessandro Bucciol

Alessandro Bucciol

University of Verona - Department of Economics; Netspar

Laura Cavalli

University of Verona - Department of Economics

Igor Fedotenkov

Russian Academy of National Economy and Public Administration under the President of the Russian Federation (RANEPA)

Paolo Pertile

University of Verona - Department of Economics

Veronica Polin

University of Verona

Nicola Sartor

University of Verona

Alessandro Sommacal

Universite Catholique de Louvain - Institut de Recherches Economiques et Sociales (IRES)

Date Written: December 14, 2015

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.

Keywords: Redistribution, fiscal policy, computable OLG models

JEL Classification: H2, H3

Suggested Citation

Bucciol, Alessandro and Cavalli, Laura and Fedotenkov, Igor and Pertile, Paolo and Polin, Veronica and Sartor, Nicola and Sommacal, Alessandro, Public Policies over the Life Cycle: A Large Scale OLG Model for France, Italy and Sweden (December 14, 2015). Netspar Discussion Paper No. 12/2015-041, Available at SSRN: https://ssrn.com/abstract=2707193 or http://dx.doi.org/10.2139/ssrn.2707193

Alessandro Bucciol (Contact Author)

University of Verona - Department of Economics ( email )

Via Cantarane 24
Verona, 37129
Italy
+39 045.802.8278 (Phone)
+39 045.802.8529 (Fax)

HOME PAGE: http://www.sites.google.com/site/abucciol/

Netspar ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

Laura Cavalli

University of Verona - Department of Economics ( email )

Via dell'Artigliere, 8
37129 Verona
Italy

Igor Fedotenkov

Russian Academy of National Economy and Public Administration under the President of the Russian Federation (RANEPA) ( email )

Vernadskogo Prospect 82
Sredny av. V.O., 57/43
Moscow, St. Petersburg 119571
Russia

Paolo Pertile

University of Verona - Department of Economics ( email )

Via dell'Artigliere, 8
Verona, 37129
Italy

Veronica Polin

University of Verona ( email )

Via Cantarane 24
37129 Verona
Italy

Nicola Sartor

University of Verona ( email )

Dipartimento di Diritto dell'Economia via dell'Artigliere, 19
I-37129 Verona
Italy
+39 045 8028 508 (Phone)
+39 045 8028 519 (Fax)

HOME PAGE: http://www.univr.it/ivs/materie/econpubbl.htm

Alessandro Sommacal

Universite Catholique de Louvain - Institut de Recherches Economiques et Sociales (IRES) ( email )

3, Place Montesquieu
1348 Louvain-la-Neuve
Belgium

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