The Economics of Producing Defense : Illustrated by the Israeli Case

**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. Front Matter....Pages i-xv Economic Aspects of National Security....Pages 1-18 A Historical Perspective: How National Security Became an Economic Issue....Pages 19-38 Economic Elements in Israel’s National Security Doctrine....Pages 39-48 Defense Economics Issues in Israel....Pages 49-66 Measuring Defense Expenditures....Pages 67-86 Israel’s Defense Expenditures....Pages 87-100 Military Manpower....Pages 101-142 Defense Industries....Pages 143-224 The Israeli Defense Industry....Pages 225-244 The Economics of Arms Trade....Pages 245-300 Defense Exports and Imports of Israel....Pages 301-326 Back Matter....Pages 327-354