Working Paper: NBER ID: w11352
Authors: Michael W. Klein
Abstract: This paper reviews six English-language books on the economy of Israel. Each book was written or edited by Israelis, and each is from a different decade. The earliest book, Don Patinkin's The Israel Economy: The First Decade, was written in the late 1950s, and the most recent volume, The Israeli Economy, 1985 - 1998: From Government Intervention to Market Economics (edited by Avi Ben-Bassat), was published in 2002. While each book considers the Israeli economy at a different stage of its development, five common themes appear: (i) the relevant comparison group for considering the Israeli economy, (ii) the challenges of immigration, integration and inequality, (iii) the appropriate roles of the government and markets, (iv) openness and dependence, and (v) inflation, crisis, and stabilization. Overall, the chronology of economic views presented in these books corresponds to an increasing acceptance of the role of markets and an increasing desire for open trade in goods and assets.
Keywords: Israeli economy; immigration; government intervention; market economics
JEL Codes: N0
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Economic integration of immigrants (K37) | Economic development in Israel (O29) |
| Influx of Jews from Europe and Asia (N34) | Economic performance in Israel (O57) |
| 1951 economic crisis (N14) | Reevaluation of government controls (H10) |
| Reevaluation of government controls (H10) | Shift toward market mechanisms (D47) |
| Post-crisis economic policies (H12) | Foundation for future liberalization efforts (E69) |
| Government intervention (O25) | Shift toward market-oriented policies (E69) |