The ISF II is developed to model the economy of the OPT within a historical perspective to serve as an analytical tool for economic forecasting, scenario analysis and policy assessment. It is capable of simulating the Palestinian economy under alternative policy scenarios. For example, UNCTAD (2019b) uses the ISF II to assess the impact of the leakage of Palestinian fiscal resources to Israel and to quantify the associated cost to the Palestinian economy in terms of output and employment through the period 2000–2017.

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