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The macroeconomic impact of structural reforms: The case of Italy

Author

Listed:
  • D’Andrea, Sara
  • D’Andrea, Silvia
  • Di Bartolomeo, Giovanni
  • D’Imperio, Paolo
  • Infantino, Giancarlo
  • Meacci, Mara

Abstract

We propose a methodology to map structural reforms from granular data to an aggregate model, exploring their transmission mechanisms and their macroeconomic and social impacts. The study focuses on the rich case of the reforms associated with the Italian Recovery and Resilience Plan. We document a significant potential impact on medium- and long-term GDP and find that the labour market and education measures are the main drivers of the impact on GDP and employment. We also examine the distributional impact of the reforms on the functional income distribution.

Suggested Citation

  • D’Andrea, Sara & D’Andrea, Silvia & Di Bartolomeo, Giovanni & D’Imperio, Paolo & Infantino, Giancarlo & Meacci, Mara, 2024. "The macroeconomic impact of structural reforms: The case of Italy," Journal of Policy Modeling, Elsevier, vol. 46(5), pages 946-963.
    • Handle: RePEc:eee:jpolmo:v:46:y:2024:i:5:p:946-963
    DOI: 10.1016/j.jpolmod.2024.05.002
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    More about this item

    Keywords

    Fiscal structural policies; Government efficiency; Potential output; Functional income distribution;
    All these keywords.

    JEL classification:

    • C54 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Quantitative Policy Modeling
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes
    • F54 - International Economics - - International Relations, National Security, and International Political Economy - - - Colonialism; Imperialism; Postcolonialism
    • F47 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Forecasting and Simulation: Models and Applications

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