Extending the Public Sector in the ICES Model with an Explicit Government Institution

31 Pages Posted: 16 Mar 2017

See all articles by Elisa Delpiazzo

Elisa Delpiazzo

CMCC - Centro Euro-Mediterraneo sui Cambiamenti Climatici

Ramiro Parrado

CMCC - Centro Euro-Mediterraneo sui Cambiamenti Climatici; Fondazione Eni Enrico Mattei (FEEM); Ca Foscari University of Venice - SMCC Phd

Gabriele Standardi

Fondazione Eni Enrico Mattei

Date Written: March 15, 2017

Abstract

This paper aims to present an extension of the ICES model to capture the public sector. Departing from a demand system mainly derived from the GTAP model, ICES-XPS model disentangles the private and the public actors. The paper reviews the changes in both the database and the model equations following the existing literature and considering the availability of data as well. The model is then tested with a series of simple experiments to highlight its contribution to economic analysis in which the public sector may play an important role. Finally, we show the flexibility in the closure rule of the public sector that allows addressing different policy research questions.

Keywords: Computable General Equilibrium, Public Sector, Government Budget

JEL Classification: C68, D58, H60

Suggested Citation

Delpiazzo, Elisa and Parrado, Ramiro and Standardi, Gabriele, Extending the Public Sector in the ICES Model with an Explicit Government Institution (March 15, 2017). FEEM Working Paper No. 11.2017, Available at SSRN: https://ssrn.com/abstract=2933367 or http://dx.doi.org/10.2139/ssrn.2933367

Elisa Delpiazzo (Contact Author)

CMCC - Centro Euro-Mediterraneo sui Cambiamenti Climatici ( email )

via Augusto Imperatore, 16
Lecce, I-73100
Italy

Ramiro Parrado

CMCC - Centro Euro-Mediterraneo sui Cambiamenti Climatici ( email )

via Augusto Imperatore, 16
Lecce, I-73100
Italy

Fondazione Eni Enrico Mattei (FEEM) ( email )

Isola di San Giorgio Maggiore
Venezia, VE 30124
Italy

Ca Foscari University of Venice - SMCC Phd ( email )

Dorsoduro 3246
Venice, Veneto 30123
Italy

Gabriele Standardi

Fondazione Eni Enrico Mattei ( email )

Corso Magenta 63
20123 Milan
Italy

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