In recent years Israelis have discovered that no issue is more critical to the future of Israel than its economy. This discovery is part of the great change now taking place in Israel from the founding era to the era of settling in. This book represents an effort to understand what has gone before as Israel is about to open a new chapter in its political economy. The authorsóYosef Gabbay, David Kochav, Dabid Rodet, Raphael Roter, Moshe Sanbar, and Nira Shamaióare leading economists who have been personally involved in policy-making and implementation almost since the beginning of the state. Contents: The Political Economy of Israel, 1948-1982, The Influence of Defense Expenditure on the Israeli Economy, The Balance of Payments and Economic Growth, Israel's Fiscal Policy, 1948-1982, Social Effects of the Fiscal System, Social Policy and the Israeli Economy, 1948-1980, Housing Policy, Education Policy, Health Care Policy, Social Security and Income Maintenance Policy Policy, Bibliography, Index. Co-published with the Jerusalem Center for Public Affairs.