TAX CUTS AND ECONOMIC ACTIVITY: ISRAEL IN THE 2000s

Zvi Hercowitz () and Avihai Lifschitz ()
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Avihai Lifschitz: Tel Aviv University

Israel Economic Review, 2015, vol. 12, issue 2, 97-125

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.

Date: 2015
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