EconPapers    
Economics at your fingertips  
 

Macroeconomic effects of growth-enhancing measures in the euro area

Alessandro Cantelmo (), Alessandro Notarpietro () and Massimiliano Pisani ()

No 1384, Temi di discussione (Economic working papers) from Bank of Italy, Economic Research and International Relations Area

Abstract: We evaluate the short- and long-term effects of different growth-enhancing policy measures implemented in the euro area by simulating a calibrated New Keynesian model featuring endogenous growth via the private sector's R&D accumulation. We find that higher public investment in infrastructures, pro-competition reforms in the product market, and subsidies to R&D have a positive effect on long-term growth and raise the natural rate of interest. In the short term, these measures can have mildly negative effects on inflation through their positive effect on aggregate supply.

Keywords: endogenous growth; R&D spending; new keynesian model; monetary policy; euro area (search for similar items in EconPapers)
JEL-codes: E30 E52 O30 O42 (search for similar items in EconPapers)
Date: 2022-10
New Economics Papers: this item is included in nep-cba, nep-dge, nep-eec and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://www.bancaditalia.it/pubblicazioni/temi-dis ... 384/en_tema_1384.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bdi:wptemi:td_1384_22

Access Statistics for this paper

More papers in Temi di discussione (Economic working papers) from Bank of Italy, Economic Research and International Relations Area Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2023-01-31
Handle: RePEc:bdi:wptemi:td_1384_22