The effects of fiscal policy in Italy were studied using a model that looks at how government spending impacts the economy. The researchers found that when the government spends more on goods and services, it boosts economic activity in the short term, leading to increases in real GDP, employment, consumption, and investment. However, the effects on inflation are small and temporary. On the other hand, changes in public wages don't seem to have a significant impact on output, and shocks to net revenue don't affect the variables studied.