{
  "title": "Fiscal Consolidation in Israel: A Global Fiscal Model Perspective",
  "publication": "IMF Working Papers, November 1, 2006",
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  "summary": "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.",
  "sections": [
    {
      "heading": "Summary",
      "content": "- Fiscal consolidation is an important policy prescription for many emerging market countries (EMCs), particularly for the highly indebted ones.\n- This paper represents, to the best of the authors' knowledge, one of the first attempts in the literature to quantify the costs of delaying fiscal consolidation in an EMC.\n- The analysis uses the IMF's Global Fiscal Model (GFM)."
    },
    {
      "heading": "Major findings",
      "content": "- 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.\n- Using an alternative fiscal instrument, the authors find that delaying tax cuts would result in cumulative real GDP that is much larger than otherwise."
    },
    {
      "heading": "Methodology and scope",
      "content": "- Model used: IMF's Global Fiscal Model (GFM).\n- Focus: Quantifying costs of delaying fiscal consolidation in an emerging market context, with Israel as the case study."
    },
    {
      "heading": "Policy implications",
      "content": "- Prudent fiscal policies reduce vulnerabilities, but implementation is often postponed.\n- The results underscore that timing and choice of fiscal instruments (expenditure cuts versus tax cuts) materially affect long-term output and cumulative real GDP outcomes.\n\n---\n\n Content in this bundle\n\n- wp06253 - References\n  - wp06253 - References (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp06253 - References (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/fiscal-consolidation-in-israel-a-global-fiscal-model-perspective-19937"
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    "Authors: Natan P. Epstein, Selim A Elekdag, Marialuz Moreno Badia",
    "Published: November 1, 2006",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451865134.001",
    "Fiscal consolidation is an important policy prescription for many emerging market countries (EMCs), particularly for the highly indebted ones.",
    "This paper represents, to the best of the authors' knowledge, one of the first attempts in the literature to quantify the costs of delaying fiscal consolidation in an EMC.",
    "The analysis uses the IMF's Global Fiscal Model (GFM).",
    "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, the authors find that delaying tax cuts would result in cumulative real GDP that is much larger than otherwise.",
    "Model used: IMF's Global Fiscal Model (GFM).",
    "Focus: Quantifying costs of delaying fiscal consolidation in an emerging market context, with Israel as the case study.",
    "Prudent fiscal policies reduce vulnerabilities, but implementation is often postponed.",
    "The results underscore that timing and choice of fiscal instruments (expenditure cuts versus tax cuts) materially affect long-term output and cumulative real GDP outcomes.",
    "**_wp06253 - References**"
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