Italy: Quantifying the Benefits of a Comprehensive Reform Package
18 Pages Posted: 5 Apr 2018
Date Written: March 2018
This paper seeks to quantify the net benefits of a comprehensive reform package aimedat addressing Italy's inter-related challenges. Specifically, it simulates the growth andcompetitiveness effects of a package of fiscal, financial, wage bargaining, and otherstructural reforms. Credible implementation of such a package yields substantial mediumtermdividends at negligible near-term growth costs. Real GDP growth is estimated to besubstantially higher over the medium term, while the real effective exchange ratedepreciates notably.
Keywords: Labor market reforms, Wage bargaining, Europe, Italy, Banking sector, Fiscal policy, growth, competitiveness, product market reforms, DSGE models, Forecasting and Other Model Applications, Quantitative Policy Modeling, Forecasting and Simulation, General, Institutions and Growth
JEL Classification: C53, C54, E27, E61, E62, J30, J52, L11, O43
Suggested Citation: Suggested Citation