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

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)

Claudio Battiati

International Monetary Fund (IMF)

Claudio Cesaroni

University of Rome Tor Vergata - Department of Economics and Finance

Fabio Di Dio

Sogei S.p.a.

Francesco Felici

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

Date Written: May 2, 2017

Abstract

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

Suggested Citation

Annicchiarico, Barbara and Battiati, Claudio and Cesaroni, Claudio and Di Dio, Fabio and Felici, Francesco, IGEM-PA: A Variant of the Italian General Equilibrium Model for Policy Analysis (May 2, 2017). Government of the Italian Republic (Italy), Ministry of Economy and Finance, Department of the Treasury Working Paper No. 2. Available at SSRN: https://ssrn.com/abstract=3048189

Barbara Annicchiarico (Contact Author)

University of Rome, Tor Vergata - Department of Economics and Finance ( email )

Rome, I-00133
Italy

University of Rome Tor Vergata - Centre for International Studies on Economic Growth (CEIS) ( email )

Via Columbia, 2
Rome, I-00133
Italy

Claudio Battiati

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Claudio Cesaroni

University of Rome Tor Vergata - Department of Economics and Finance ( email )

Rome
Italy

Fabio Di Dio

Sogei S.p.a. ( email )

Via Mario Carucci n. 99 e 85
Roma, 00143
Italy
+39068544 9092 (Phone)

Francesco Felici

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

Via XX Settembre, 97
Rome, 00187
Italy
00390647614197 (Phone)

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