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.

1 Economic Aspects of National Security.- 2 A Historical Perspective: How National Security Became an Economic Issue.- 3 Economic Elements in Israel's National Security Doctrine.- 4 Defense Economics Issues in Israel.- 5 Measuring Defense Expenditures.- 6 Israel's Defense Expenditures.- 7 Military Manpower.- 8 Defense Industries.- 9 The Israeli Defense Industry.- 10 The Economics of Arms Trade.- 11 Defense Exports and Imports of Israel.- References.

In writing The Economics Of Producing Defense: Illustrated by the Israeli Case Yaacov Lifshitz draws upon his experience in government service in Israel, as the Chief Economic Adviser in the Ministry of Defense, the Director General of the Ministry of Finance and Chairman of the Board of Israel Military Industries (IMI) Ltd. For many years he also lectured on Economics and Defense Economics in various academic institutes in Israel. Besides, Mr. Lifshitz held prominent positions in the Israeli business sector. An earlier version of the book was awarded the Chechick Prize from Jaffee Center for Strategic Studies in Tel Aviv University.