ORANI-IT: a computable general equilibrium model of Italy

Francesco Felici and Maria Gesualdo

No 7, Working Papers from Department of the Treasury, Ministry of the Economy and of Finance

Abstract: This paper presents the comparative-static national disaggregate Computable General Equilibrium (CGE) model of the Italian economy, ORANI-IT, which represents the starting point to the development of a tax CGE model of Italy. The model, designed at the Department of Treasury of the Italian Ministry of the Economy and Finance, in collaboration with the Centre of Policy Studies (CoPS), and currently managed at Sogei S.p.A. (IT Economia - Modelli di Previsione ed Analisi Statistiche), is intended for policy analysis. The aim of this paper is to provide a complete description of the theoretical specification of the model and to illustrate the process of compiling the model�s database. Departing from the core structure, features of the Italian model in the context of ORANI-style models, developed at CoPS, are highlighted, as data availability allowed us to improve the modelling of the investment matrix and the demand of labour. The result is a more reliable model with a broader level of analysis. The paper concludes with the model�s validation, which among several checks, consists in an illustrative two targets/two instruments simulation.

Keywords: Computable general equilibrium (CGE) model; model's validation; Italy (search for similar items in EconPapers)
JEL-codes: C68 E10 E60 (search for similar items in EconPapers)
Pages: 47
Date: 2014-08
New Economics Papers: this item is included in nep-cmp and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:itt:wpaper:2014-7

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