Government of the Italian Republic (Italy), Ministry of Economy and Finance, Department of the Treasury Working Paper No. 4
58 Pages Posted: 17 Jan 2017
Date Written: October 31, 2016
This paper provides a full technical description of a variant of the Italian General Equilibrium Model (IGEM), a dynamic general equilibrium model used as a laboratory for policy analysis at the Department of the Italian Treasury. This version of IGEM presents four specific key features: (i) imperfectly competitive final good sector; (ii) involuntary unemployment; (iii) a business tax bearing on firms; (iv) market frictions in the labor market of atypical workers.
The paper presents some simulation scenarios of structural and fiscal reforms.
Keywords: Dynamic General Equilibrium Model, Quantitative Policy Analysis, Simulation Analysis, Italy
JEL Classification: E27, E30, E60
Suggested Citation: Suggested Citation
Annicchiarico, Barbara and Di Dio, Fabio and Felici, Francesco, IGEM II: A New Variant of the Italian General Equilibrium Model (October 31, 2016). 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=2900296