This paper develops a regional dynamic general equilibrium model calibrated using two regional SAMs for the Italian region Valle D'Aosta for the years 1963 and 2002. A historical calibration procedure is performed over the 40 years period and ensures that the modelled tendencies perfectly reproduce the actual observed growth patterns of the main regional macroeconomic variables. The dynamic general equilibrium model provides an original and powerful tool for historical counterfactual analysis not available using standard dynamic general equilibrium models. The model is used to compare the growth path followed by the region during the period of interest with a counterfactual scenario intended to evaluate how the region would have performed in the case of a contraction of the transfers from the national government to the regional government and the families.
File in questo prodotto:
Non ci sono file associati a questo prodotto.