An empirical Stock‐Flow Consistent regional model of Campania

Abstract

We develop an innovative Stock-Flow Consistent macroeconometric regional model with five sectors, exploiting economic and financial statistics for Campania, covering the period 1995-2018, and propose a methodology to close the financial account of the private sector when financial data are lacking. The model is then used to perform medium term Economic Policy Scenario Analysis. We find that a debt-funded fiscal expansion has permanent positive effects on growth, with an impact multiplier above one and a medium-run multiplier of 0.71. In the case of a balancedbudget rule the same increase in government spending has still positive effects on growthwith a medium-run multiplier of 0.6but adverse ones on the private corporate sector.

Financing the energy transition in a green sub‐Saharan African (SSA) environment: Does energy intensity matter?

“…Other energy sector‐focussed studies with SFC as the theoretical anchor include Davis (1987), Canelli et al (2022) and Jackson and Victor (2020) among others.…”

A prototype regional stock‐flow consistent model

“…The only regional SFC model in the literature so far is the macroeconometric model presented inCanelli et al (2022), which however deals with a single region, assuming a "small-country hypothesis".3 We do not attempt to turn the model into a faithful representation of the two Italian regions. We try to strike a balance between the calibration of the model over Italian data, and the attempt to provide a prototype which could be adapted to other cases.…”

A Prototype Regional Stock-Flow Consistent Model

“…The only regional SFC model in the literature so far is the macroeconometric model presented inCanelli, Realfonzo, and Zezza (2022), which deals with a single region, assuming a "small-country hypothesis. "…”