Fiscal devaluation scenarios: a quantitative assessment for the Italian economy

Barbara Annicchiarico (), Fabio Di Dio () and Francesco Felici

No 1, Working Papers from Department of the Treasury, Ministry of the Economy and of Finance

Abstract: We study the potential impact of fiscal devaluation policies on the Italian economy using IGEM, a dynamic general equilibrium model for the Italian economy developed at the Department of Treasury of the Italian Ministry of the Economy and Finance. The simulations show that fiscal devaluation policies are likely to produce slight improvements on the external position of the economy only in the short run, 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.

Keywords: Fiscal devaluation; DGE; structural reforms; Italy (search for similar items in EconPapers)
JEL-codes: C50 E10 E60 (search for similar items in EconPapers)
Pages: 21
Date: 2014-02
New Economics Papers: this item is included in nep-dge, nep-eec and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Fiscal Devaluation Scenarios: A Quantitative Assessment for the Italian Economy (2015)
Working Paper: Fiscal Devaluation Scenarios: A Quantitative Assessment for the Italian Economy (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:itt:wpaper:2014-1

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