Despite the potential for free-riding, workers motivated by `making a difference' to the mission or output of an establishment may donate labour to it. When the establishment uses performance related compensation (PRC), these labour donations closely resemble a standard private provision of...

Despite the potential for free-riding, workers motivated by ‘making a difference’ to the mission or output of an establishment may donate labour to it. When the establishment uses performance related compensation (PRC), these labour donations closely resemble a standard private provision of...

The central question in taxation and development is: "how does a government go from raising around 10% of GDP in taxes to raising around 40%"? This paper looks at the economic and political forces that shape the way that fiscal capacity is created and sustained. As well as reviewing the...

Fiscal reform is central to the process of transforming a Soviet-type economy to a market economy, for with the emergence of a significant private sector, the boundaries between the public and private sectors needs to be more sharply drawn. The paper draws lessons from the experience of the...

In this paper we examine the main challenges in promoting an effective market economy. While the paper ranges widely across the spectrum of economic institutions and policies, the central theme is the importance of macroeconomic stability for economic growth in the medium and long run....

Despite their small number, Israeli economists have become an important fixture in the international academic scene. In recent years, this phenomenon has been characterized by an additional attribute: the number of Israelis who have chosen to leave the country’s universities - or not to return...

One of the more important measures of a scholar’s research impact is the number of times that the scholar’s work is cited by other researchers as a source of knowledge. This paper conducts a first of its kind examination on Israel’s academic economists and economics departments, ranking...

Deterrence of illegal activities is frequently carried out by many atomistic auditors (tax auditors, law enforcement agents, etc.). Not much is known either normatively about the best way to incentivize atomistic auditors, nor positively about what these incentives actually look like in real...

This paper provides a comparative examination of how public universities in two countries, the United States and Israel, have evolved over the past few decades - and how differences between the two have culminated in a rate of academic brain drain from the latter to the former that is...

This Paper analyses the effect of terror on the economy. Terror endangers life such that the value of the future relative to the present is reduced. Hence, due to a rise in terror activity, investment goes down, and in the long run income and consumption go down as well. Governments can offset...