While the global economy suffered one of its worst declines in modern history, many countries actually increased their defense budgets. The U.S dramatically increased its military spending between 2007 and 2009, and the Obama administration plans large increases to follow. The State of Israel...

This thesis analyzes the long-run Crowding Out Effect of military expenditures on investment in Israel from 1948 to 2009. Changes in military spending are expected to affect the real interest rate and investment since the government has to borrow in order to finance the expenditure. Deficit...

Prior scholarly analysis of Israeli military spending has focused on national security questions. We present a mathematical model incorporating security threats as well as electoral cycles and corporate profits. The parameters are estimated empirically. The results support the idea that in...

Evidence from Israel suggests that economic growth may benefit from increased investment rates and cuts in defense spending - in other words, an economic `peace dividend'. Recent scholarly work, however, focusing on short-term, direct impacts, has provided little evidence for the existence of...

1 Economic Aspects of National Security -- 2 A Historical Perspective: How National Security Became an Economic Issue -- 3 Economic Elements in Israel’s National Security Doctrine -- 4 Defense Economics Issues in Israel -- 5 Measuring Defense Expenditures -- 6 Israel’s Defense Expenditures...