Open Economies Review

, Volume 26, Issue 4, pp 731–785

Fiscal Devaluation Scenarios: A Quantitative Assessment for the Italian Economy

  • Barbara Annicchiarico
  • Fabio Di Dio
  • Francesco Felici
Research Article

DOI: 10.1007/s11079-014-9335-7

Cite this article as:
Annicchiarico, B., Dio, F.D. & Felici, F. Open Econ Rev (2015) 26: 731. doi:10.1007/s11079-014-9335-7


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


Fiscal Devaluation DGE Fiscal Reforms Italy 

JEL Classification

E10 C50 E60 

Copyright information

© Springer Science+Business Media New York 2014

Authors and Affiliations

  • Barbara Annicchiarico
    • 1
  • Fabio Di Dio
    • 2
  • Francesco Felici
    • 3
  1. 1.Department of EconomicsLaw and Institutions, University of Rome “Tor Vergata”RomaItaly
  2. 2.IT Economia - Modelli di Previsione ed Analisi Statistiche, Sogei S.p.a.RomaItaly
  3. 3.Department of the TreasuryEconomic and Financial Analysis and Planning Directorate, Italian Ministry of Economy and FinanceRomaItaly

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