The Israeli Economy: A Story of Success and Costs

“An excellent overview of the Israeli economy. Long before Israel became known as the Start-Up Nation, there were wars and massive immigration waves and hyperinflation. Zeira’s brilliant book analyzes the factors that led to Israel’s remarkable economic development, and also offers a sober assessment of some of the most pressing economic challenges the nation faces today.”—Effi Benmelech, Northwestern University

“A fascinating analysis of how, despite a tough geopolitical environment, a small and poor country became one of the richest countries in the world. Joseph Zeira does a masterful job of showing the role of human capital, fast technological adoption, and a good quality public sector in the Israeli economic success. These are important conclusions, and important lessons for other countries to learn from.”—Olivier J. Blanchard, Peterson Institute for International Economics

“Written by one of the finest macroeconomic theorists in the world, this book tells the fascinating story of Israel’s miracle growth, covering a range of topics from the phenomenal success of the high-tech sector to the nation’s unacceptable levels of inequality. The Israeli Economy will be of value not just to those interested in Israel but to students of development economics as well as policymakers in emerging economies trying to crack the secrets of growth.”—Kaushik Basu, former chief economist at the World Bank

“An insightful history. Zeira uses data, institutional facts, and economics to trace the development of the modern Israeli economy and provides an insightful analysis of the lessons to be learned from Israel’s experiences. The book should be of great interest to economists and noneconomists alike. Highly recommended.”—Martin S. Eichenbaum, Northwestern University