IGEM-PA: A Variant of the Italian General Equilibrium Model for Policy Analysis
Government of the Italian Republic (Italy), Ministry of Economy and Finance, Department of the Treasury Working Paper No. 2
78 Pages Posted: 6 Oct 2017
Date Written: May 2, 2017
This paper extends IGEM, the dynamic general equilibrium model for the Italian economy currently in use at the Italian Department of the Treasury for economic policy analysis. In this new variant of the model the public sector is explicitly modelled as suppliers of goods and services. With this tool in hand we are able to present an in-depth analysis of expenditure-based fiscal multipliers and ameliorate our understanding of the potential macroeconomic effects of several policy interventions, such as those aimed at the rationalization of public spending, at the improvement of the business environment and at fostering productivity of the public administration (PA).
Keywords: Structural Reforms, Dynamic General Equilibrium Model, Italy, Public Administration Fiscal Multipliers, Simulation Analysis
JEL Classification: E27, E30, E60
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