Citation:
Michel Strawczynski and Zeira, Joseph . 1999. “Reducing The Relative Size Of Government In The Israeli Economy After 1985 (In Hebrew)”. The Israeli Economy- 1985-1988, Avi Ben-Bassat Ed., M.i.t. Press.
Abstract:
This chapter analyzes the abrupt reduction of government expenditure that allowed reducing the deficit after 1985 – backing the Israeli economy to successfully confront the challenges of the 1990s. We analyze the reasons for the reduction of defense expenditure and we show that this feature was crucial for creating an historical regime shift in Israeli Fiscal Policy.