Fiscal policies amid a pandemic the response of Italy to the COVID-19 crisis Marco Di Pietro, Luigi Marattin, and Raoul Minetti
By: Di Pietro, Marco
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Contributor(s): Marattin, Luigi | Minetti, Raoul.
Material type: 
ArticlePublisher: 2020Subject(s): PANDEMIAS | CORONAVIRUS | POLITICA ECONOMICA | PRESUPUESTOS | CRISIS ECONOMICAS | AYUDA ESTATAL | PRESTACIONES SOCIALES | POLITICA FISCAL | MODELOS ECONOMETRICOS | ITALIA
In:
National Tax Journal v. 73, n. 3, September 2020, p. 927-950Summary: This paper investigates qualitatively and quantitatively the fiscal policies adopted in Italy in response to the COVID-19 crisis. We assess the rationale of the policies in light of the characterizing features of the business and household sectors and of the state of public budgets. We then evaluate the impact of the policies through a calibrated model of the Italian economy featuring a comprehensive specification of taxes, transfers, and subsidies. The quantitative analysis suggests that the policies reduced the gross domestic product (GDP) impact of the COVID-19 shock by 25 percent at the peak of the crisis. Alternative fiscal stimulus plans tilted toward a larger reduction of corporate taxes, and stronger increases in public expenditures could have achieved a sharper attenuation of the GDP drop but would have been less desirable from a distributive perspective or for the dynamics of public finances.
| Item type | Current location | Home library | Call number | Status | Date due | Barcode |
|---|---|---|---|---|---|---|
| Artículos | IEF | IEF | OP 233/2020/3-12 (Browse shelf) | Available | OP 233/2020/3-12 |
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Resumen.
Bibliografía.
This paper investigates qualitatively and quantitatively the fiscal policies adopted in Italy in response to the COVID-19 crisis. We assess the rationale of the policies in light of the characterizing features of the business and household sectors and of the state of public budgets. We then evaluate the impact of the policies through a calibrated model of the Italian economy featuring a comprehensive specification of taxes, transfers, and subsidies. The quantitative analysis suggests that the policies reduced the gross domestic product (GDP) impact of the COVID-19 shock by 25 percent at the peak of the crisis. Alternative fiscal stimulus plans tilted toward a larger reduction of corporate taxes, and stronger increases in public expenditures could have achieved a sharper attenuation of the GDP drop but would have been less desirable from a distributive perspective or for the dynamics of public finances.
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