DEFINE-GOV extends the DEFINE-SIMPLE model by introducing the government sector. This allows the model to analyse the role of carbon taxes and green subsidies in the green transition. It also allows the analysis of the implications of green policies for public indebtedness.  DEFINE-GOV consists of four sectors: firms, households, banks and the government sector. The government sector undertakes consumption spending, collects income taxes from households and firms, imposes carbon taxes and provides green subsidies. It also issues government securities that are bought by households and banks. The stock of these securities corresponds to public debt.

For a publication that uses DEFINE-GOV and the related code, see here. 

Manual