The contents of this report constitute technical advice provided by the staff of the International Monetary Fund (IMF) to the authorities of Italy (the “TA recipientâ€) in response to their request for technical assistance. This report (in whole or in part) or summaries thereof may be...

Macroeconomic studies of tax policy in dynamic general equilibrium usually assume that reforms hit the economy unexpectedly and last forever. Here, we explore how previous results change when we allow policy changes to be pre-announced and of finite duration and when these facts are anticipated...