MACGEM IT- A SAM based CGE model for Italian Economy

Abstract

The continuous evolution of the regulatory framework requires the development of analysis instruments able to support the policy maker in designing and quantifying the impact of selected policy measures. With this intent, the Italian Ministry of Economic and Finance developed a static Computable General Equilibrium model, namely MACGEM-IT model. Specifically built to reproduce the characteristics of Italian economy, the MACGEM-IT model is calibrated on the Social Accounting Matrix for Italy and is a multi-input, multi-output and multi-sector static CGE model. It provides a measure of the aggregate, disaggregate, direct and indirect response of the economic system to economic policy measures.