Engle-Granger representation theory is used to estimate the secular and cyclical determinants of business output in Israel during 1960–1988. The specification of the secular production function is based on the technique of cointegration, while the cyclical, or short-term, production function...

The literature on economic aspects of defence in Israel is critically reviewed by subject: measuring the defence burden, the determinants of defence spending, the effects of defence spending on the economy, and the military-industrial complex. An overview of the Israeli economy is provided, and...

Using quarterly data from 1970-1987 we estimate a simple econometric model in which inflation and the money supply are jointly determined and in which expectations of inflation are rational, or forward-looking. The model is estimated using the recently developed `cointegration' principle in...