Hostname: page-component-745bb68f8f-hvd4g Total loading time: 0 Render date: 2025-01-11T02:24:32.678Z Has data issue: false hasContentIssue false
  • English
  • Français

Economic Planning of the Free Market in Israel during the First Decade: The Influence of Don Patinkin on Israeli Policy Discourse

Published online by Cambridge University Press:  25 November 2010

Arie Krampf
Arie Krampf*
Affiliation:
Max Planck Institute for the History and Philosophy of Science
Get access Rights & Permissions [Opens in a new window]

Argument

Following World War II, as macroeconomics and econometrics became a necessary tool for policy-making, economists worldwide rose in influence. Those economists in peripheral and new countries were especially important as they could wield the instruments essential in forming states. Israel was no exception. In Israel this process was associated with the establishment of the economics department at the Hebrew University in Jerusalem and the Falk Project, led by Don Patinkin and the community of economists that he nurtured. This article poses three questions regarding Patinkin's influence and his role in the process of state formation. First, how did he affect economic policy discourse in Israel; second, what role did Patinkin and his students play in the process of state formation; and finally, what was the effect of Patinkin and his students on Israeli government policies? I argue that Patinkin had a specific and irreducible influence on the localization of pro-market ideas and policies in Israel, and that he and his students contributed to the consolidation of the state autonomy and capacity. Furthermore, I argue that they contributed to a more strict implementation of the recession policy in the mid-1960s.

Type
Research Article
Information
Science in Context , Volume 23 , Special Issue 4: Science in an Israeli Context: Case Studies , December 2010 , pp. 507 - 534
Copyright
Copyright © Cambridge University Press 2010

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Acharya, Amitav. 2004. “How Ideas Spread: Whose Norms Matter? Norm Localization and Institutional Change in Asian Regionalism.” International Organization 58 (2):239–275.CrossRefGoogle Scholar
Aharoni, Yair. 1962. “Adaptation to the International Price Level.” Economics Quarterly 36:213–223 (Hebrew).Google Scholar
Aujac, Henri. 2004. “Leontief's Input-Output Table and the French Development Plan.” In Wassily Leontief and Input-Output Economics, edited by Dietzenbacher, Erik and Lahr, Michael L., 294–310. Cambridge: Cambridge University Press.Google Scholar
Baharal, Uri. 1965. The Effect of Mass Immigration on Wages in Israel. Jerusalem: Falk Project.Google Scholar
Barber, William J. 1990. “Government as a Laboratory for Economic Learning in the Years of the Democratic Roosevelt.” In The State and Economic Knowledge: The American and British Experience, edited by Furner, Mary O. and Supple, Barry, 103–137. Woodrow Wilson Center series. Washington, D.C.: Woodrow Wilson International Center for Scholars.Google Scholar
Barkai, Haim. 1968. The Public, the Histadrut and the Private Sectors in the Israeli Economy. Jerusalem: Falk Center for Economic Research in Israel (Hebrew).Google Scholar
Barkai, Haim. 1990. The Origin of the Israeli Economy. Jerusalem: Bialik Institute (Hebrew).Google Scholar
Barnett, Michael, and Finnemore, Martha. 2004. Rules for the World: International Organizations in Global Politics. Cornell: Cornell University Press.Google Scholar
Bennett, Colin J., and Howlett, Michael. 1992. “The Lessons of Learning: Reconciling Theories of Policy Learning and Policy Change.” Policy Sciences 25 (3):275–294. doi:10.1007/BF00138786.CrossRefGoogle Scholar
Citron, Zwi, and Kessler, Avraham. 1958. Investments in Manufacturing Made through the Investment Center. Mimemograph. Jerusalem: Falk Project.Google Scholar
Coats, Alfred W. 1981. Economists in Government: An International Comparative Study. Durham: Duke University Press.Google Scholar
Coats, Alfred W. 1996a. “The Internationalization of Economic Policy Reform: Some Recent Literature.” History of Political Economy 28:337–354.CrossRefGoogle Scholar
Coats, Alfred William, ed. 1996b. The Post-1945 Internationalization of Economics. Annual Supplement to Volume 28 History of Political Economy. Durham and London: Duke University Press.Google Scholar
Colander, David. 1984. “Was Keynes a Keynesian or a Lernerian?” Journal of Economic Literature 22 (4):1572–75.Google Scholar
Collins, Robert M. 1990. “The Emergence of Economic Growthmanship in the United States: Federal Policy and Economic Knowledge in the Truman Years.” In The State and Economic Knowledge: The American and British Experience, edited by Mary, O. Furner and Supple, Barry, 103–137. Woodrow Wilson Center series. Washington, D.C.: Woodrow Wilson International Center for Scholars.Google Scholar
Creamer, Daniel, Weisbrod, Hadasa, Kahane, Rivka, Kotowitz, Yehuda, Katz, David, Barkai, Michael, Noam, Michael, Kurzweil, Zeev, and Duvshani, Haim. 1957. The National Income of Israel, 1950–1954. Jerusalem: Falk Center for Economic Research in Israel (Hebrew).Google Scholar
Den Bakker, G. P. 1994. “Dutch National Accounts: A History.” In The Accounts of Nations, edited by Kenessey, Zoltan, 66–92. Amsterdam: IOS Press.Google Scholar
DiMaggio, Paul J., and Powell, Walter W.. 1983. “The Iron Cage Revisited: Institutional Isomorphism and Collective Rationality in Organizational Fields.” American Sociological Review 48 (2):147–160.CrossRefGoogle Scholar
Djelic, Marie-Laure, and Kerstin, Sahlin-Andersson. 2008. “Introduction: A World of Governance: The Rise of Transnational Regulation.” In Transnational Governance: Institutional Dynamics of Regulation, edited by Djelic, Marie-Laure and Sahlin-Andersson, , 1–28. Cambridge University Press.Google Scholar
Drazen, Allan. 2002. “Conditionality and Ownership in IMF Lending: A Political Economy Approach.” IMF Staff Papers 49 (Special Issue):36–67.CrossRefGoogle Scholar
Eleish, E. Gamal. 1963. “Uses of the Input-Output Model in Development Planning in Underdeveloped Countries.” In Middle Eastern Studies in Income and Wealth, edited by Khan, Taufiq M., 286–317.Google Scholar
Elkins, Zachary, and Simmons, Beth. 2005. “On Waves, Clusters, and Diffusion: A Conceptual Framework.” ANNALS of the American Academy of Political and Social Science 598 (1):33–51.Google Scholar
Fourcade-Gourinchas, Marion, and Babb, Sarah L.. 2002. “The Rebirth of the Liberal Creed: Paths to Neoliberalism in Four Countries.” American Journal of Sociology 108 (3):533–579.CrossRefGoogle Scholar
Frenkel, Michal. 2008. “The Emergence of the Managerial Field in Israel as a Dynamic in Overlapping Fields.” Israeli Sociology 10 (1):133–159 (Hebrew).Google Scholar
Ga'athon, Arieh L. 1962. “Economic Planning in Israel.” In Israel Economy: in Theory and Practice, edited by Naphtali, Perez, Horowitz, David, and Forder, Isha'ayahu, 178–202. Tel Aviv: Dvir (Hebrew).Google Scholar
Galfat, Yitzhak. 1960. “Objections to Patinkin's Essay.” Economics Quarterly 27:217–232 (Hebrew).Google Scholar
Morris, Goldstein. 2001. IMF Structural Conditionality: How Much Is Too Much? Washington DC: Institute for International Economics.Google Scholar
Golomb, David. 1961. “Import Surplus, A Cause or and Outcome?” Economics Quarterly 29:150–152 (Hebrew).Google Scholar
Greenwald, Carol Schwartz. 1972. Recession as a Policy Instrument: Israel 1965–1969. London: C. Hurst.Google Scholar
Grinberg, Lev Luis. 1991. Split Corporatism in Israel. Albany: State University of New York Press.Google Scholar
Gross, Nahum T. 1995. “The Economic Regime during Israel's First Decade.” In Israel: The First Decade of Independence, edited by Troen, Ilan and Lucas, Noah, 231–241. New York: State University of New York Press.Google Scholar
Gross, Nahum T. 2004a. “Social Sciences in the Hebrew University until 1948/9.” Unpublished manuscript (Hebrew).Google Scholar
Gross, Nahum T. 2004b. “Department of Economics in the Hebrew University in the 1950s.” Unpublished manuscript (Hebrew).Google Scholar
Gruenbaum, A. Ludwig. 1950. Four Years Development Plan of Israel, 1950–1953. Prime Minister's Office, Department of Economic Research.Google Scholar
Haggard, Stephen, and Chung, H. Lee. 1993. “The Political Dimension of Finance in Economic Development.” In The Politics of Finance in Developing Countries, edited by Haggard, Stephen, Lee, Chung H., and Maxfield, Sylvia, 3–20. Ithaca and London: Cornell University Press.Google Scholar
Halevi, Nadav, and Klinov-Malul, Ruth. 1988. The Economic Development of Israel. Jerusalem: Akademon (Hebrew).Google Scholar
Hall, Peter A. 1989. The Political Power of Economic Ideas: Keynesianism Across Nations. Princeton: Princeton University Press.Google Scholar
Hall, Peter A. 1993. “Policy Paradigms, Social Learning, and the State: The Case of Economic Policymaking in Britain.” Comparative Politics 25 (3):275–296.CrossRefGoogle Scholar
Hall, Peter A., and Soskice, David W. 2001. “An Introduction to Varieties of Capitalism.” In Varieties of Capitalism: The Institutional Foundations of Comparative Advantage, edited by Hall, Peter A. and Soskice, David W., 1–68. Oxford: Oxford University Press.Google Scholar
Hart, Mitchell Bryan. 2000. Social Science and the Politics of Modern Jewish Identity. Stanford studies in Jewish history and culture. Stanford: Stanford University Press.CrossRefGoogle Scholar
Hollinger, William C. 1954. “National Income Estimates in the Statistical Policy of an Underdeveloped Area: A Comment.” Review of Economic Studies 22 (3):220–225.CrossRefGoogle Scholar
Horowitz, David. 1960. “Economic Development and the Banking System in Israel.” Givaat Haviva Archive, Box 3, file 1, 74–95, June 27.Google Scholar
Ikeo, Aiko. 1996. “The Internationalizaton of Economics in Japan.” In The Post-1945 Internationalization of Economics, edited by Coats, Alfred William, 123–141. Annual Supplement to Volume 28 of History of Political Economy, published by Duke University Press.Google Scholar
Johnson, Chalmers A. 1982. MITI and the Japanese Miracle: The Growth of Industrial Policy, 1925–1975. Stanford: Stanford University Press.Google Scholar
Kalecki, Michael. 1951. Report on Main Current Economic Problems of Israel. Jerusalem: Israel Ministry of Finance.Google Scholar
Khan, Mohsin S., and Sharma, Sunil. 2003. “IMF Conditionality and Country Ownership of Adjustment Programs.” World Bank Research Observer 18 (2):227–248.Google Scholar
Kimmerling, Baruch. 1983. Zionism and Economy. Cambridge MA: Schenkman Publishing.Google Scholar
Kleiman, Efraim. 1981. “Israel: Economists in a New State.” History of Political Economy 13 (3):548–578.Google Scholar
Kochav, David. 1959. “Comments on Economic Planning.” Economics Quarterly 23:244–247 (Hebrew).Google Scholar
Koopmans, Tjalling C. 1947. “Measurement without Theory.” Review of Economics and Statistics 29 (3):161–172.Google Scholar
Krampf, Arie. 2009a. Translation of Central Banking to Developing Countries in the Postwar Period: The Case of the Bank of Israel. Preprint/Max-Planck-Institut für Wissenschaftsgeschichte.Google Scholar
Krampf, Arie. 2009b. “The Genealogy of the Concept of Economic Independence in Israeli Discourse, 1948–1966.” Iyunim Be'Tkumat Israel 19:1–34 (Hebrew).Google Scholar
Krampf, Arie. 2009c. “Mass Immigration, Economic Independence and Central Banking: David Horowitz and the Ideas that Shaped the Developmental Discourse in Israel, 1934–1966.” Ph.D. diss., Tel Aviv University.Google Scholar
Kuznets, Simon. 1954. “Economic Policy and Research.” Economics Quarterly 4:291–294 (Hebrew).Google Scholar
Kuznets, Simon. 1957. “Economic Development of Small Countries.” Economics Quarterly 17–18:3–12 (Hebrew).Google Scholar
Leibler, Anat E. 2008. “Nationalizing Statistics: A Comparative Study of the Development of Official Statistics during the 20th Century in Israel-Palestine and Canada.” Ph.D. diss., University of California, San Diego.Google Scholar
Leontief, Wassily. 1944. “Output, Employment, Consumption, and Investment.” Quarterly Journal of Economics 58 (2):290–314.Google Scholar
Levi-Faur, David. 2001. The Visible Hand: State-Directed Industrialization in Israel. Jerusalem: Yad Ben-Zvi Press (Hebrew).Google Scholar
Levi-Faur, David. 2005. “The Global Diffusion of Regulatory Capitalism.” ANNALS of the American Academy of Political and Social Science 598 (1):12–32.Google Scholar
Levy, Jack S. 1994. “Learning and Foreign Policy: Sweeping a Conceptual Minefield.” International Organization 48 (2):279–312.Google Scholar
Loriaux, Michael. 1999. “The French Developmental State as Myth and Moral Ambition.” In The Developmental State, edited by Woo-Cumings, Meredith, 235–275. Ithaca: Cornell University Press.Google Scholar
Markoff, John, and Montecinos, Verónica. 1993. “The Ubiquitous Rise of Economists.” Journal of Public Policy 13 (1):37–68.Google Scholar
Mehrling, Perry. 2002. “Don Patinkin and the Origins of Postwar Monetary Orthodoxy.” European Journal of the History of Economic Thought 9 (2):161–185.CrossRefGoogle Scholar
Metzer, Jacob. 1979. National Capital to National Home, 1919–1921. Jerusalem: Yad Itzhak Ben-Zvi (Hebrew).Google Scholar
Meyer, John W., John, Boli, Thomas, George M., and Ramirez, Francisco O.. 1997. “World Society and the Nation-State.” American Journal of Sociology 103 (1):144–181.Google Scholar
Michaely, Micha. 1963. Foreign Trade and Capital Imports in Israel. Jerusalem: Am Oved (Hebrew).Google Scholar
Molcho, Avner. 2005. “Capitalism and the ‘American Way’.” In Society and Economy in Israel, edited by Bareli, Avi, Gutwein, Daniel, and Friling, Tuvia, 1:263–294. Sde Boker: Ben-Gurion Research Institute (Hebrew).Google Scholar
Morgan, Mary S., and Rutherford, Malcolm. 1998. “American Economics: The Character of the Transformation.” History of Political Economy 30 (4):1–26.CrossRefGoogle Scholar
Patinkin, Don. 1960. Economic Progress in Israel. Economics Quarterly 25–26:22–29 (Hebrew).Google Scholar
Patinkin, Don. 1967. The Israel Economy: The First Decade. Jerusalem: Maurice Falk Project for Economic Research in Israel.Google Scholar
Patinkin, Don. 1995. “The Training of an Economist.” BNL Quarterly Review 195:359–396.Google Scholar
Peacock, Alan T., and Dosser, Douglas. 1957. “Input-Output Analysis in an Underdeveloped Country: A Case Study.” Review of Economic Studies 25 (1):21–24.Google Scholar
Penslar, Derek Jonathan. 2001. Shylock's Children: Economics and Jewish Identity in Modern Europe. Berkeley: University of California Press.CrossRefGoogle Scholar
Pinnes, David. 1961. “Indexes of Economic Independence.” Economics Quarterly 31:242–252 (Hebrew).Google Scholar
Pyatt, F. Graham, and Roe, Alan. 1977. Social Accounting for Development Planning with Special Reference to Sri Lanka. Cambridge: Cambridge University Press.Google Scholar
Ronnen, Y. 1960. “About Dan Patinkin's Essay.” Economics Quarterly 25–26:162–165 (Hebrew).Google Scholar
Rose, Richard. 1991. “What Is Lesson-Drawing?” Journal of Public Policy 11 (1):3–30.Google Scholar
Rose, Richard. 1993. Lesson-drawing in Public Policy: A Guide to Learning across Time and Space. London: Chatham House.Google Scholar
Rozin, Orit. 2008. Duty and Love: Individualism and Collectivism in 1950s Israel. Tel Aviv: Am Oved (Hebrew).Google Scholar
Ruggie, John Gerard. 1982. “International Regimes, Transactions, and Change: Embedded Liberalism in the Postwar Economic Order.” International Organization 6 (2):379–415.Google Scholar
Sabatier, Paul A. 1998. “The Advocacy Coalition Framework: Revisions and Relevance for Europe.” Journal of European Public Policy 5 (1):98–130.Google Scholar
Scitovsky, Tibor. 1984. “Lerner's Contribution to Economics.” Journal of Economic Literature 22 (4): 1547–1571.Google Scholar
Seers, Dudley. 1952. “The Role of National Income Estimates in the Statistical Policy of an Underdeveloped Area.” Review of Economic Studies 20 (3):159–168.Google Scholar
Shalev, Michael. 1992. Labour and the Political Economy in Israel. Library of Political Economy. Oxford: Oxford University Press.Google Scholar
Shishido, Shuntaro. 2004. “Japan's Economic Growth and Policy-Making in the Context of Input-Output Models.” In Wassily Leontief and Input-Output Economics, edited by Dietzenbacher, Erik and Lahr, Michael L., 294–310. Cambridge: Cambridge University Press.CrossRefGoogle Scholar
Sikkink, Kathryn. 1991. Ideas and Institutions: Developmentalism in Brazil and Argentina. Ithaca: Cornell University Press.Google Scholar
Simons, Henry Calvert. [1934] 1948. “A Positive Program for Laissez-Faire.” In Economic Policy for a Free Society, 40–77. Chicago: University of Chicago Press.Google Scholar
Starrett, Agnes Lynch. 1966. The Maurice and Laura Falk Foundation: A Private Fortune, a Public Trust. Pittsburgh: Historical Society of Western Pennsylvania.Google Scholar
Stone, Richard, and Corbit, John D.. 1997. “The Accounts of Society.” American Economic Review 87 (6):17–29.Google Scholar
Susman, Zvi. 1960. “Limitation of Economic Planning in Israel.” Economics Quarterly 28:337–366 (Hebrew).Google Scholar
Troen, Ilan. 1996. “American Experts in the Design of Zionist Society.” In Envision Israel: The Changing Ideals and Images of North American Jews, edited by Gal, Alon, 193–218. Jerusalem and Detroit: Magnes Press and Wayne State University Press.Google Scholar
Vining, Rutledge. 1949. “Koopmans on the Choice of Variables to be Studies and the Methods of Measurement.” Review of Economics and Statistics 31 (2):77–86.Google Scholar
Weintraub, E. Roy. 2002. How Economics Became a Mathematical Science. Durham: Duke University Press.Google Scholar
Woo-Cumings, Meredith, ed. 1999. The Developmental State. Cornell University Press.Google Scholar
Yonay, Yuval P. 1998. The Struggle over the Soul of Economics: Institutionalist and Neoclassical Economists in America Between the Wars. Princeton: Princeton University Press.Google Scholar