Fabio Di Dio

Fabio Di Dio
Sogei spa · IT Economia - Modelli di Previsione ed Analisi Statistiche

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30
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551
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Publications

Publications (30)
Article
We develop a Stackelberg differential game to analyze the economic effects of the reduction plan through two policy instruments, tradable permits and taxes on emissions. Emissions are a by‐product of firm output. The authority acts as a Stackelberg leader, able to set the optimal instrument's level in the light of a finite‐horizon environmental tar...
Article
This paper derives the optimal response of the primary budget balance to changes in the public debt as a share of gross domestic product (GDP) in a stochastic model of debt. Under the optimal solution, the surplus reactivity to the debt‐GDP ratio is independent of the debt ratio itself, but its size depends on the degree of uncertainty surrounding...
Article
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Motivated by empirical evidence on firm networks in Italy, this paper explores the relationship between the nature of goods produced by firms operating in the same R&D network and their strategic location. We consider a two-firm spatial Cournot model deriving the conditions under which two firms create a cooperative link in order to share R&D cost-...
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We develop a two-stage Salop-type model to examine quality-improving and process innovation alliances in an oligopolistic context. In the first stage, a network of alliances among firms is assumed while in the second stage firms set prices, product quality and cost-reducing process innovation. We find that quality-improving networks tend to be dens...
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The paper investigates the incentives of Salop-type oligopolistic firms to cooperate and the architecture of the resulting collaboration networks. We find that when spillovers are exogenous, firm profits are not affected by the network structure. On the contrary, with endogenous spillovers (absorptive capacity) firms tend to form less dense network...
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The paper investigates the stability and efficiency of R&D collaboration in a three-firm Hotelling game. Firms are assumed to be horizontally and vertically differentiated and to provide public services where price is thus set by the regulator. We show that firm-quality effort decreases with the number of links. Nonetheless, a conflict between stab...
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This paper presents a simple dynamic general equilibrium model with supply-side strategic interactions to study the economic effects of mitigating greenhouse gas emissions in an economy with an emission cap and oligopolistic firms competing on prices. With such endogenous market structure a gradual decarbonization policy is likely to induce higher...
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This paper examines the optimal environmental and monetary policy mix in a New Keynesian model embodying pollutant emissions, abatement technology and environmental damage. The optimal response of the economy to productivity shocks is shown to depend crucially on the instruments policy makers have available, the intensity of the distortions they ha...
Article
We build up a large scale dynamic general equilibrium model embodying a cap on pollutant emissions, an electricity sector and fuel consumption to analyse climate-energy policies for the Italian economy. Our results show how the trade-off between environmental quality and economic activity can be effectively overcome by recycling the revenues from t...
Article
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, w...
Article
This paper investigates the economic consequences of migration in the Ramsey-type dynamic optimizing context. In contrast to Hazari and Sgro (2003) conclusions, we show that migration unambiguously reduces the per-capita domestic consumption growth, whereas necessarily raises the long-run per-capita consumption of domestic residents when productio...
Article
This paper studies the dynamic behavior of an economy under different environmental policy regimes in a New Keynesian model with nominal and real uncertainty. We find the following results: (i) an emissions cap policy is likely to dampen macroeconomic fluctuations; (ii) staggered price adjustment alters significantly the performance of the environm...
Article
We study the potential impact of fiscal devaluation policies on the Italian economy using IGEM, a dynamic general equilibrium model for the Italian economy developed at the Department of Treasury of the Italian Ministry of the Economy and Finance. The simulations show that fiscal devaluation policies are likely to produce short-run slight improveme...
Article
This article derives optimal fiscal rules within a stochastic model of Keynesian type in the context of Poole (1970). By using optimal control theory and applying the Hamilton-Jacoby-Bellman equation, we extend the original Poole results concerning the output stabilisation properties of monetary policy to the case of fiscal policy. In particular, w...
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This paper incorporates the phenomenon of tolerance, as the ability to accept diversity, into an economic analysis showing how different aptitudes to trust and cooperation can affect economic outcomes. In the economic system we propose, tolerance is associated with the different weight that agents attribute to their own nature and to the institutio...
Article
In this paper we assess the implications of policy reforms for the Italian economy by jointly using the Italian Treasury Econometric Model (ITEM) and QUEST III, the endogenous growth dynamic general equilibrium (DGE) model of the European Commission (DG ECFIN) in the version calibrated for Italy. We point out some of the key differences between the...
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This paper provides a full technical account of the Italian General Equilibrium Model (IGEM), a new dynamic general equilibrium model for the Italian economy developed at the Department of Treasury of the Italian Ministry of the Economy and Finance. IGEM integrates typical New Keynesian elements, such as imperfect competition and nominal rigidities...
Article
Since the second half of 2011, after a period of prolonged low growth, Italy has found itself at the center of a severe economic crisis. Concerns about the sustainability of its debt burden, along with gloomy growth prospects, have pushed up the cost of government borrowing, exacerbating current economic conditions. At the moment Italy is facing tw...
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This paper investigates the economic consequences of migration in the Ramsey-type dynamic optimizing context. In contrast to Hazari and Sgro (2003) conclusions, we show that with a Cobb-Douglas production function migration unambiguously reduces per-capita domestic consumption growth, whereas necessarily raises the long-run per-capita consumption o...
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Full-text available
This paper studies the potential effects on the Italian economy of various reform packages in the spirit of the Europe 2020 strategy. Using the European Commission’s model QUEST III with R&D calibrated to match important features of the Italian economy, we provide a quantitative assessment of the possible effects in terms of growth, employment, sus...
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In this paper we compare the dynamic properties of the Italian Treasury Econometric Model (ITEM) with those of QUEST III, the endogenous growth model of the European Commission (DG ECFIN) in the version calibrated for Italy. We consider an array of shocks often examined in policy simulations and investigate their implications on macro variables. In...
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Central banks are continually considering the problem of how to identify which price changes should be considered permanent and which entirely temporary. Indeed, due to the delayed effect that monetary policy uses to put its choices into action, a wrong valuation of the type of inflation can prove extremely costly for the economy and does not produ...
Article
Monetary authorities speculate that by using core inflation measures it is possible to subdivide observed price variations into two components: a persistent component extended over a long time horizon and a short-term component representing transient shocks. The first type of variation is that which interests policy authorities, since it is control...
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In this paper, we analyze the role of cooperation between firms through a model of growth and social capital. In a growth model à la Solow we incorporate the set of resources that a relational network has at its disposals, as a distinct production factor, and thus examine its dissemination through evolutionary type processes in firm interactions. D...

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