מחזוריות הטבות המס: המקרה הישראלי

Translated title of the contribution: Cyclicality of Tax Expenditures: The Case of Israel

Research output: Contribution to journalArticlepeer-review

Abstract

Tax expenditures have been rarely investigated internationally because of lack of data. This paper analyzes the cyclicality of tax expenditures in Israel, a country that has gradually intensified the use of this tool, becoming quantitatively important in terms of GDP when compared to other OECD countries. Using quarterly data for the period 1986 to 2016, I find that the pattern of cyclicality of government decisions on tax expenditures changed after 1997, following a notorious reduction of the government’s deficit and debt: tax expenditures became pro-cyclical in expansions and counter-cyclical in recessions. The latter finding resembles the pattern documented in the literature for government spending in selected developing economies, who achieved in recent years counter-cyclical implementation of spending.
Translated title of the contributionCyclicality of Tax Expenditures: The Case of Israel
Original languageHebrew
Pages (from-to)137-167
Number of pages31
Journalרבעון לכלכלה
Volume67
Issue number1-4
StatePublished - 2023

IHP publications

  • IHP publications
  • Fiscal policy
  • Tax deductions

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