01963cas a2200265 a 4500 AALejournalIMF004509 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451865134 1018-5941 BD-DhAAL BD-DhAAL Epstein, Natan. Fiscal Consolidation in Israel : A Global Fiscal Model Perspective / Natan Epstein, Selim Elekdag, Marialuz Moreno Badia. Washington, D.C. : International Monetary Fund, 2006. 1 online resource (31 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students 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. Mode of access: Internet Elekdag, Selim. Moreno Badia, Marialuz. IMF Working Papers; Working Paper ; No. 2006/253 Full text available on IMF http://elibrary.imf.org/view/journals/001/2006/253/001.2006.issue-253-en.xml IMF e-Library