We study the potential impact of fiscal devaluation poon the Italian economy using IGEM, a dynamic general equilibrium model for the Italian economy developed at the Italian Department of the Treasury. The simulations show that fiscal devaluation policies are likely to produce short-run slight improvements on the external position of the economy, while the output gains seem to persist in the long run. Non-negligible distributional effects across households are also observed, since taxation on consumption tends to be regressive.
Annicchiarico, B., Dio, F.D., Felicii, F. (2014). Fiscal Devaluation Scenarios: A Quantitative Assessment for the Italian Economy. OPEN ECONOMIES REVIEW, 26(4), 731-785 [10.1007/s11079-014-9335-7].
Fiscal Devaluation Scenarios: A Quantitative Assessment for the Italian Economy
Annicchiarico, Barbara
Writing – Original Draft Preparation
;
2014-01-01
Abstract
We study the potential impact of fiscal devaluation poon the Italian economy using IGEM, a dynamic general equilibrium model for the Italian economy developed at the Italian Department of the Treasury. The simulations show that fiscal devaluation policies are likely to produce short-run slight improvements on the external position of the economy, while the output gains seem to persist in the long run. Non-negligible distributional effects across households are also observed, since taxation on consumption tends to be regressive.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
