01916cas a2200241 a 4500 AALejournalIMF013931 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484305225 1018-5941 BD-DhAAL BD-DhAAL Guerson, Alejandro. The Composition of Fiscal Consolidation Matters : Policy Simulations for Hungary / Alejandro Guerson. Washington, D.C. : International Monetary Fund, 2013. 1 online resource (29 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 This paper evaluates policy alternatives to achieve permanent fiscal consolidation in Hungary, based on a general equilibrium calibration. The main finding is that the composition of the consolidation, as determined by the mix of revenue and expenditure measures, has important implications for growth, employment, investment, and other key macroeconomic variables. A reduction in current expenditures yields the smallest GDP contraction in the short term and can increase output in the long term by stimulating labor participation and private investment. On the other end of the spectrum, a consolidation of government investment and corporate taxes are the most costly, as disincentives for private investment result in protracted declines in GDP that compound over time to GDP losses that are multiple times the initial size of the consolidation. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2013/207 Full text available on IMF http://elibrary.imf.org/view/journals/001/2013/207/001.2013.issue-207-en.xml IMF e-Library