IDEAS home Printed from https://ideas.repec.org/a/spr/italej/v7y2021i1d10.1007_s40797-020-00127-y.html
   My bibliography  Save this article

The Multisector Applied Computable General Equilibrium Model for Italian Economy (MACGEM-IT)

Author

Listed:
  • Claudio Socci

    (Università di Macerata)

  • Francesco Felici

    (Ministero dell’Economia e delle Finanze)

  • Rosita Pretaroli

    (Università di Macerata)

  • Francesca Severini

    (Università di Macerata)

  • Renato Loiero

    (Senato della Repubblica)

Abstract

The continuous evolution of the institutional and regulatory framework requires the development of analysis instruments able to support the policy maker in designing and evaluating the impact of specific policy measures for the achievement of selected targets. With this intent, the MACGEM-IT model is developed to measure the aggregate and disaggregated, direct and indirect impacts of economic policy proposals within the economic system. Specifically built to reflect the characteristics of Italian economy, MACGEM-IT is a multi-input, multi-output and multi-sector static CGE model calibrated on the Social Accounting Matrix for Italy. It incorporates rigidities on prices, market imperfections and specific constraints on the behaviour of selected institutional sectors. The capability of the model to track the transmission mechanisms of policy measures and identify their direct, indirect and induced effects in the economy, is tested through a set of fiscal policy simulations.

Suggested Citation

  • Claudio Socci & Francesco Felici & Rosita Pretaroli & Francesca Severini & Renato Loiero, 2021. "The Multisector Applied Computable General Equilibrium Model for Italian Economy (MACGEM-IT)," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 7(1), pages 109-127, March.
    • Handle: RePEc:spr:italej:v:7:y:2021:i:1:d:10.1007_s40797-020-00127-y
    DOI: 10.1007/s40797-020-00127-y
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s40797-020-00127-y
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s40797-020-00127-y?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Maurizio Ciaschini & Francesca Severini, 2010. "The Economic Impact of the Green Certificate Market through the Macro Multiplier Approach," Working Papers 2010.105, Fondazione Eni Enrico Mattei.
    2. Arnold C. Harberger, 1962. "The Incidence of the Corporation Income Tax," Journal of Political Economy, University of Chicago Press, vol. 70(3), pages 215-215.
    3. Rosita Pretaroli & Francesca Severini, . "Assessing the effects of a value added tax policy on the wine sectors," Enometrica, Enometrica - Review of the Vineyard Data Quantification Society (VDQS) and the European Association of Wine Economists (EuAWE) - Macerata University, Faculty of Communications.
    4. Bovenberg, A. Lans & Graafland, Johan J. & de Mooij, Ruud A., 2000. "Tax reform and the Dutch labor market: an applied general equilibrium approach," Journal of Public Economics, Elsevier, vol. 78(1-2), pages 193-214, October.
    5. Cicinelli, Claudio & Cossio, Andrea & Nucci, Francesco & Ricchi, Ottavio & Tegami, Cristian, 2010. "The Italian Treasury Econometric Model (ITEM)," Economic Modelling, Elsevier, vol. 27(1), pages 125-133, January.
    6. Talman, A.J.J. & van der Laan, G., 1979. "A restart algorithm for computing fixed points without an extra dimension," Other publications TiSEM 1f2102f8-e6da-4e9c-a2ed-9, Tilburg University, School of Economics and Management.
    7. Christopher A. Pissarides, 2000. "Equilibrium Unemployment Theory, 2nd Edition," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262161877, December.
    8. Francesca Severini & Francesco Felici & Noemi Ferracuti & Rosita Pretaroli & Claudio Socci, 2019. "Gender policy and female employment: a CGE model for Italy," Economic Systems Research, Taylor & Francis Journals, vol. 31(1), pages 92-113, January.
    9. Willem Gunning, Jan & Keyzer, Michiel A., 1995. "Applied general equilibrium models for policy analysis," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 35, pages 2025-2107, Elsevier.
    10. Federico Perali & Pasquale Lucio Scandizzo (ed.), 2018. "The New Generation of Computable General Equilibrium Models," Springer Books, Springer, number 978-3-319-58533-8, June.
    11. Bohringer, Christoph & Boeters, Stefan & Feil, Michael, 2005. "Taxation and unemployment: an applied general equilibrium approach," Economic Modelling, Elsevier, vol. 22(1), pages 81-108, January.
    12. Dixon, Peter B. & Parmenter, B.R., 1996. "Computable general equilibrium modelling for policy analysis and forecasting," Handbook of Computational Economics, in: H. M. Amman & D. A. Kendrick & J. Rust (ed.), Handbook of Computational Economics, edition 1, volume 1, chapter 1, pages 3-85, Elsevier.
    13. Herbert E. Scarf, 1967. "The Approximation of Fixed Points of a Continuous Mapping," Cowles Foundation Discussion Papers 216R, Cowles Foundation for Research in Economics, Yale University.
    14. Maurizio Ciaschini & Rosita Pretaroli & Francesca Severini & Claudio Socci, 2013. "Environmental tax and regional government consumption expenditure in a fiscal federalism system," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 2013(2), pages 129-152.
    15. Guido Bulligan & Fabio Busetti & Michele Caivano & Pietro Cova & Davide Fantino & Alberto Locarno & Lisa Rodano, 2017. "The Bank of Italy econometric model: an update of the main equations and model elasticities," Temi di discussione (Economic working papers) 1130, Bank of Italy, Economic Research and International Relations Area.
    16. Maurizio Ciaschini & Claudio Socci, 2007. "Bi†Regional Sam Linkages: A Modified Backward And Forward Dispersion Approach," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 19(3), pages 233-254, November.
    17. Claudio Socci & Francesca Severini & Rosita Pretaroli & Irfan Ahmed & Clio Ciaschini, 2018. "Unconventional monetary policy expansion: the economic impact through a dynamic CGE model," International Journal of Monetary Economics and Finance, Inderscience Enterprises Ltd, vol. 11(2), pages 140-162.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Konstantins Benkovskis & Olegs Matvejevs, 2023. "The New Version of Latvian CGE Model," Working Papers 2023/02, Latvijas Banka.
    2. Stefano Deriu & Marcello Signorelli & Claudio Socci & Rosita Pretaroli & Francesca Severini & Ludovica Almonti, 2024. "The impact of shocks and policies on debt-to-GDP ratio dynamics: a multisectoral approach," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 41(2), pages 417-438, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Irfan Ahmed & Claudio Socci & Francesca Severini & Rosita Pretaroli & Hassan Kasady Al Mahdi, 2020. "Unconventional monetary policy and real estate sector: a financial dynamic computable general equilibrium model for Italy," Economic Systems Research, Taylor & Francis Journals, vol. 32(2), pages 221-238, April.
    2. Francesco Felici & Maria Gesualdo, 2014. "ORANI-IT: a computable general equilibrium model of Italy," Working Papers 7, Department of the Treasury, Ministry of the Economy and of Finance.
    3. Maurizio Ciaschini & Rosita Pretaroli & Francesca Severini & Claudio Socci, 2013. "Environmental tax and regional government consumption expenditure in a fiscal federalism system," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 2013(2), pages 129-152.
    4. Irfan Ahmed & Claudio Socci & Ali Medabesh & Francesca Severini & Jacopo Zotti, 2021. "Economic impact of monetary policy: Focus on real estate sector in Italy," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(1), pages 1256-1269, January.
    5. Gerard van der Laan & Dolf Talman & Zaifu Yang, 2004. "Solving Discrete Zero Point Problems," Tinbergen Institute Discussion Papers 04-112/1, Tinbergen Institute.
    6. Berger, Johannes & Strohner, Ludwig, 2020. "Documentation of the PUblic Policy Model for Austria and other European countries (PUMA)," Research Papers 11, EcoAustria – Institute for Economic Research.
    7. van der Laan, Gerard & Talman, Dolf & Yang, Zaifu, 2011. "Solving discrete systems of nonlinear equations," European Journal of Operational Research, Elsevier, vol. 214(3), pages 493-500, November.
    8. Talman, A.J.J. & van der Heyden, L., 1981. "Algorithms for the linear complementarity problem which allow an arbitrary starting point," Research Memorandum FEW 99, Tilburg University, School of Economics and Management.
    9. Michaelis, Jochen & Birk, Angela, 2006. "Employment- and growth effects of tax reforms," Economic Modelling, Elsevier, vol. 23(6), pages 909-925, December.
    10. van der Laan, G. & Talman, A.J.J. & Yang, Z.F., 2007. "Combinatorial Integer Labeling Thorems on Finite Sets with an Application to Discrete Systems of Nonlinear Equations," Other publications TiSEM 264c28a5-10b6-44e1-9694-4, Tilburg University, School of Economics and Management.
    11. Esmedekh Lkhanaajav, 2016. "CoPS-style CGE modelling and analysis," Centre of Policy Studies/IMPACT Centre Working Papers g-264, Victoria University, Centre of Policy Studies/IMPACT Centre.
    12. Mouez Fodha & Patricia Le Maitre, 2007. "Demographic Transition, Involuntary Unemployment and Intergenerational Redistribution: simulations in an AGEM framework [Transition démographique, chômage involontaire et redistribution intergénéra," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00144652, HAL.
    13. van der Laan, G. & Talman, A.J.J. & Yang, Z.F., 2007. "A vector labeling method for solving discrete zero point and complementarity problems," Other publications TiSEM 070869d0-4e42-4d34-85f9-b, Tilburg University, School of Economics and Management.
    14. Böhringer, Christoph & Rutherford, Thomas Fox & Wiegard, Wolfgang, 2003. "Computable general equilibrium analysis: Opening a black box," ZEW Discussion Papers 03-56, ZEW - Leibniz Centre for European Economic Research.
    15. Antón, Arturo & Boyd, Roy & Elizondo, Alejandra & Ibarrarán, María Eugenia, 2016. "Universal social insurance for Mexico: Modeling of a financing scheme," Economic Modelling, Elsevier, vol. 52(PB), pages 838-850.
    16. Chuangyin Dang & Hans van Maaren, 1998. "A Simplicial Approach to the Determination of an Integer Point of a Simplex," Mathematics of Operations Research, INFORMS, vol. 23(2), pages 403-415, May.
    17. Fæhn, Taran & Gómez-Plana, Antonio G. & Kverndokk, Snorre, 2009. "Can a carbon permit system reduce Spanish unemployment?," Energy Economics, Elsevier, vol. 31(4), pages 595-604, July.
    18. Mouez Fodha & Patricia Le Maitre, 2007. "Transition démographique, chômage involontaire et redistribution intergénérationnelle : simulations dans un cadre d'équilibre général à générations imbriquées," Documents de travail du Centre d'Economie de la Sorbonne v07011, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    19. Arntz, Melanie & Boeters, Stefan & Gürtzgen, Nicole & Schubert, Stefanie, 2008. "Analysing welfare reform in a microsimulation-AGE model: The value of disaggregation," Economic Modelling, Elsevier, vol. 25(3), pages 422-439, May.
    20. Yiyin Cao & Chuangyin Dang & Yabin Sun, 2022. "Complementarity Enhanced Nash’s Mappings and Differentiable Homotopy Methods to Select Perfect Equilibria," Journal of Optimization Theory and Applications, Springer, vol. 192(2), pages 533-563, February.

    More about this item

    Keywords

    CGE; SAM; Fiscal policy; Impact analysis;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • E16 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Social Accounting Matrix
    • E17 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Forecasting and Simulation: Models and Applications
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:italej:v:7:y:2021:i:1:d:10.1007_s40797-020-00127-y. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.