Un modello CGE multi-regionale dell'economia italiana

This work concerns the implementation of a bi-regional model to be used for analysing the regional effects of fiscal and welfare policies in order to take into account the effects on interregional terms of trade associated with national rather that with regional taxation, and the effects of taxation on the interregional mobility of factors. The main aspect concerns the methodological aspects, as this represents a significant improvement in the long-standing tradition of applied general equilibrium models. The basic structure of these models is similar to that of the AGE models used for the applications to the international trade analysis (multi-country models), although in this case further issues emerge: in particular the interaction among different levels of government and the interregional factors mobility. On the other hand, the construction of regional models poses the same methodological problems as those presented by AGE models designed for the applications to Fiscal Policy analysis, which are in general single-country models. In particular, this concerns the correct representation of the fiscal system for the computation of tax incidence effects of regional and national taxes, on the different regional economies, both in terms of resource allocation and income redistribution.