IGEM II: A New Variant of the Italian General Equilibrium Model
Government of the Italian Republic (Italy), Ministry of Economy and Finance, Department of the Treasury Working Paper No. 4
58 Pages Posted: 17 Jan 2017
Date Written: October 31, 2016
This paper provides a full technical description of a variant of the Italian General Equilibrium Model (IGEM), a dynamic general equilibrium model used as a laboratory for policy analysis at the Department of the Italian Treasury. This version of IGEM presents four specific key features: (i) imperfectly competitive final good sector; (ii) involuntary unemployment; (iii) a business tax bearing on firms; (iv) market frictions in the labor market of atypical workers.
The paper presents some simulation scenarios of structural and fiscal reforms.
Keywords: Dynamic General Equilibrium Model, Quantitative Policy Analysis, Simulation Analysis, Italy
JEL Classification: E27, E30, E60
Suggested Citation: Suggested Citation