Über den Autor
In writing The Economics Of Producing Defense: Illustrated by the Israeli Case Yaacov Lifshitz draws upon his experience in government service in Israel, as the Chief Economic Adviser in the Ministry of Defense, the Director General of the Ministry of Finance and Chairman of the Board of Israel Military Industries (IMI) Ltd. For many years he also lectured on Economics and Defense Economics in various academic institutes in Israel. Besides, Mr. Lifshitz held prominent positions in the Israeli business sector. An earlier version of the book was awarded the Chechick Prize from Jaffee Center for Strategic Studies in Tel Aviv University.
List Of Tables. Preface.
- 1: Economic Aspects Of National Security. 1. The Scope of Defense Economics. 2. Main Themes Since World War I. 3. Unique Features of Defense Economics. 4. Accelerating and Retarding Factors in Defense Economics Development.
- 2: A Historical Perspective: How National Security Became An Economic Issue. 1. National Security as a Public Good in Adam Smith. 2. The Totality of War. 3. National Security and Economic Wealth in Economic Thought. 4. National Security and Economic Wealth: A Macro-Historical Perspective.
- 3: Defense Economic Elements In Israel's National Security Doctrine. 1. The Growing Influence of Economic Factors. 2. The Broader Concept of National Security. 3. The Resource Gap between Israel and the Arab States. 4. Ambivalent Approach towards Foreign Aid. 5. The Economic Price of Wars. 6. Offensive versus Defensive Doctrines. 7. Quality versus Quantity.
- 4: Defense Economics Issues In Israel. 1. Measuring Defense Expenditures. 2. Defense Burdens in Israel and in the Arab States. 3. Defense - At the Expense of What? 4. Defense - At Whose Expense? 5. Defense Expenditures and Economic Growth. 6. Defense Expenditures and Economic Stability. 7. Determinants of Defense Expenditures Trends. 8. Managing the Defense Budget. 9. Microeconomic Issues in Defense Management. 10. The Peace Dividend.
- 5: Measuring Defense Expenditures. 1. Objectives, Limitations and Biases. 2. Standard Definitions. 3. Special Definitions. 4. Corrections and Adjustments of Monetary Values. 5. Inter-Temporal and International Comparisons. 6. The Relative Weight of Defense Expenditures in the National Economy.
- 6: Israel's Defense Expenditures. 1. Overall Defense Consumption. 2. The Composition of Defense Consumption. 3. Defense Consumption and Overall Opportunity Costs of Defense. 4. The Relative Weight of Defense Expenditures in the Economy.
- 7: Military Manpower. 1. Universal Conscription versus Selective Volunteer Force: Military, Political and Social Aspects. 2. Conscription versus Recruitment through Markets: The Economic Aspect. 3. The Supply of Volunteers for Military Service. 4. The Demand for Military Manpower. 5. Military Compensation Systems. 6. Civilian Returns on Military Training and Experience. 7. The Economics of Military Manpower in Israel.
- 8: Defense Industries. 1. The Boundaries of Defense Industry. 2. Explaining the Growth of Defense Industries. 3. Development of the Modern Defense Industry. 4. Microeconomic Issues. 5. Macroeconomic Issues. 6. Government Policy towards the Defense Industry. 7. Industrial and Business Strategies of Defense Companies.
- 9: The Israeli Defense Industry. 1. From Strategic Self-Sufficiency to Technological Force Multipliers. 2. Main Developments. 3. Characteristics of Israel's Defense-Industrial Base. 4. Macroeconomic and Structural Effects. 5. The Microeconomics of Domestic Defense Production. 6. The 1990s Crisis in Government De
The Economics of Producing Defense: Illustrated by the Israeli Case begins with an overview of the development of defense economics as a sub-discipline of the general theory of economics, and points at the new challenges it is facing in the post-Cold War era. It focuses, then, on the supply side of defense economics, presenting theoretical analyses and empirical findings related to the use of various inputs - manpower, domestically-made defense products, imported arms - in providing national security. Most of the issues under discussion are further elucidated by examples from Israel's experience. As a small economy that faces continuously severe security problems, Israel's way of coping with defense economic issues may indeed forward some interesting lessons for a wider audience.
The principal aim of the book is to convince policy-makers and the public at large of the contribution defense economics could make to more effective management of national security problems. This aim is encouraged by the growing weight attached to economic considerations and consequences in producing and supplying defense, as demonstrated in the detailed discussion.
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