Lights and Shadows in the Market Economy

doi:10.1017/9781108907620.002

1 - Lights and Shadows in the Market Economy

Published online by Cambridge University Press: 04 February 2021

Reuben Gronau and

Edited by

Reuben Gronau and

Avi Ben-Bassat: Affiliation:
Hebrew University of Jerusalem
Reuben Gronau: Affiliation:
Hebrew University of Jerusalem
Asaf Zussman: Affiliation:
Hebrew University of Jerusalem

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Summary

The introduction summarizes some of the main issues and findings covered in the book. The first section relates this volume to its two predecessors, arguing that while the last two decades signaled the fulfillment of many of the hopes raised in the previous volumes, the economy still suffers from many of the maladies highlighted in them, including low levels of productivity and high levels of inequality. Section 1.2 is concerned with the background to local economic developments, including the massive immigration wave of the 1990s and fluctuations in the conflict with the Palestinians and in the global economy. Section 1.3 discusses the reduction in government expenditures and taxes and the reaction of monetary policy to the global financial crisis. Section 1.4 summarizes the main structural reforms aiming to reduce government intervention and increase business sector competition, as well as the attempt to reduce economy-wide concentration. Section 1.5 focuses on economic growth and its determinants: changes in employment, physical and human capital, and productivity. The final section highlights two issues: (a) the improvement of Israel’s level of economic freedom and its position relative to other rich countries and (b) the increase of inequality in income and the deterioration of social services.

Keywords

Productivity growth inequality high tech reforms government expenditure taxes government debt external debt concentration

Type: Chapter
Information: The Israeli Economy, 1995–2017
Light and Shadow in a Market Economy
, pp. 1 - 38

DOI: https://doi.org/10.1017/9781108907620.002 [Opens in a new window]

Publisher: Cambridge University Press

Print publication year: 2021

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