Economic Consequences of the Intifada: Investment and Political Instability in Israel

No 00/2, Discussion Papers in Economics from Division of Economics, School of Business, University of Leicester

Abstract: We construct a time-series model of investment in Israel that incorporates both traditional economic factors derived from a theoretical model of a profit-maximising representative firm and indicators of political instability and unrest. This is used to estimate the extent to which the Intifada has depressed Israeli investment and the size of the corresponding "peace dividend".

Keywords: Investment; Political Instability; Israel (search for similar items in EconPapers)
JEL-codes: E22 O16 (search for similar items in EconPapers)
Date: 2000-01
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Citations: View citations in EconPapers (2)

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