TY - BOOK ID - 11947868 TI - Fiscal Consolidation in Israel : A Global Fiscal Model Perspective AU - Epstein, Natan. AU - Elekdag, Selim. AU - Moreno Badia, Marialuz. PY - 2006 SN - 1451865139 1462336671 1451909667 9786613825292 1452712808 128351284X PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Economic stabilization -- Israel. KW - Electronic books. -- local. KW - Fiscal policy -- Israel. KW - Political Science KW - Law, Politics & Government KW - Public Finance KW - Fiscal policy KW - Economic stabilization KW - Adjustment, Economic KW - Business stabilization KW - Economic adjustment KW - Stabilization, Economic KW - Tax policy KW - Taxation KW - Government policy KW - Economic policy KW - Finance, Public KW - Macroeconomics KW - Debt KW - Debt Management KW - Sovereign Debt KW - Fiscal Policy KW - National Government Expenditures and Related Policies: General KW - Public finance & taxation KW - Public debt KW - Fiscal consolidation KW - Expenditure KW - Government debt management KW - Debts, Public KW - Expenditures, Public KW - Israel UR - https://www.unicat.be/uniCat?func=search&query=sysid:11947868 AB - Fiscal consolidation has become an important policy prescription for many emerging market countries (EMCs), particularly for the highly indebted ones. Although prudent fiscal policies tend to reduce vulnerabilities, their implementation is usually postponed. This paper represents, to the best of our knowledge, one of the first attempts in the literature to quantify the costs of delaying fiscal consolidation in an EMC. In particular, using the IMF's Global Fiscal Model (GFM), we find that early consolidation through expenditure cuts would result in a substantial increase in Israel's long-term output growth relative to the case with delayed fiscal adjustment. Using an alternative fiscal instrument, we find that delaying tax cuts would result in cumulative real GDP that is much larger than otherwise. ER -