Front Matter Page
Fiscal Affairs Department
Contents
Abstract
I. Introduction
II. Fiscal Policy Context
III. Model Overview
A. Key Model Features
B. Economy Sectors
IV. Calibration
V. Policy Simulation: Fiscal Consolidation Instruments
Consolidation of Government Investment
Consolidation of Government Consumption
Consolidation of Government Transfers—General and Targeted
Consolidation with Consumption Taxes
Consolidation with Corporate Income Taxes
Consolidation with Labor Taxes
VI. Conclusions
References
Tables
1. Calibration
2. Trade Matrix
3. Policy Rules
4: Maximum Declines Relative to Baseline after 1 Percent of GDP Consolidation
Figures
1. Simplified Presentation of GIMF Sectors 1/
2: Permanent Fiscal Consolidation Using Alternative Fiscal Instruments
3: Impact of 1 Percent of GDP Permanent Fiscal Consolidation on National Accounts
4: Impact of 1 Percent of GDP Permanent Fiscal Consolidation on Inflation, Exchange Rates and Interest Rates
Appendixes
1. Dynamic Parameters Calibrations
Table A.1. Preferences and Population Related
Table A.2. Production, Distribution and Finance
Table A.3. Corporate Sector Calibration