Tax Cuts and Economic Activity: Israel in the 2000s

29 Pages Posted: 18 May 2015

See all articles by Zvi Hercowitz

Zvi Hercowitz

Tel Aviv University - Eitan Berglas School of Economics; National Bureau of Economic Research (NBER)

Avihai Lifschitz

Tel Aviv University

Date Written: May 2015

Abstract

This paper evaluates the quantitative macroeconomic effects of the persistent decline of income and corporate tax rates in Israel during the 2000s. The analysis is based on the simulation of a calibrated model, given a parameterized version of the tax rates process in this period. The results indicate an important contribution of the tax process to the expansion of GDP during the 2000s.

Suggested Citation

Hercowitz, Zvi and Lifschitz, Avihai, Tax Cuts and Economic Activity: Israel in the 2000s (May 2015). Israel Economic Review, Vol. 12, No. 2 (2015), 97–125, Available at SSRN: https://ssrn.com/abstract=2607199

Zvi Hercowitz (Contact Author)

Tel Aviv University - Eitan Berglas School of Economics ( email )

P.O. Box 39040
Ramat Aviv, Tel Aviv, 69978
Israel
+972 3 640 9916 (Phone)
+972 3 640 9908 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Avihai Lifschitz

Tel Aviv University ( email )

Ramat Aviv
Tel-Aviv, 6997801
Israel

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
47
Abstract Views
385
PlumX Metrics