SlideShare a Scribd company logo
1 of 19
Download to read offline
Social Protest, Housing, Regulation, and more … 
Dr. Michael Sarel, Head of Kohelet Economics Forum 
December 2014
Compared with the US, the Euro area and the OECD, the prices in Israel in most consumption sections, are not very high (as of 2011) 
129 
120 
119 
109 
103 
103 
99 
97 
94 
60 
80 
100 
120 
140 
160 
Communication (22) 
Transport (20) 
Food and non-alcoholic 
beverages (3) 
Clothing and footwear 
(16) 
Household furnishings, 
equipment and 
maintenance (18) 
Miscellaneous goods and 
services (26) 
Housing, water, 
electricity, gas and other 
fuels (17) 
Health (19) 
Education (24) 
Israel 
United States 
Euro area (17 countries) 
OECD - Total 
Source: OECD, 2011 
Standard of living
In the food section, Israel is expensive in all categories except for one 
116 
84 
103 
60 
80 
100 
120 
140 
160 
Non-alcoholic 
beverages (12) 
Milk, cheese and 
eggs (8) 
Oils and fats (9) 
Alcoholic 
beverages (14) 
Other food (11) 
Bread and 
cereals (5) 
Fish (7) 
Meat (6) 
Food and non- 
alcoholic 
beverages (3) 
Food (4) 
Alcoholic 
beverages, 
tobacco and 
narcotics (13) 
Fruits, 
vegetables, 
potatoes (10) 
Israel 
United States 
Euro area (17 countries) 
OECD - Total 
Source: OECD, 2011 
Standard of living
Price Level and Income per Capita Level 
-2 
-1.5 
-1 
-0.5 
0 
0.5 
1 
1.5 
5 
6 
7 
8 
9 
10 
11 
12
10.3% 
9.7% 
8.7% 
7.4% 
8.9% 
8.0% 
7.0% 
6.9% 
6.2% 
6.6% 
6.7% 
6.6% 
6.8% 
6.6% 
6.6% 
6.1% 
6.0% 
5.9% 
5.8% 
5.6% 
5.9% 
5.9% 
5.8% 
5.8% 
5.8% 
6.0% 
6.5% 
6.2% 
6.3% 
6.3% 
5.7% 
58% 
59% 
60% 
61% 
62% 
63% 
64% 
65% 
66% 
5% 
6% 
7% 
8% 
9% 
10% 
11% 
12% 
13% 
5 
Unemployment and Participation rates Ages 15+ 
Source: CBS 
Participation rates (RHS)
6 
Employment Rate Ages 15+, 2013 
Source: OECD 
59.8% 
55.2% 
35% 
40% 
45% 
50% 
55% 
60% 
65% 
70% 
75% 
80%
Israel, as percent of weighted average of G-8 advanced economies, 1995-2011 
50% 
60% 
70% 
80% 
90% 
100% 
income per person 
productivity per person 
productivity per worker 
productivity per hour worked 
Source: PWT 8.0 database, Michael Sarel’s calculations 
7
Competitiveness (e.g. where can the next improvements in productivity come from?) 
0 
20 
40 
60 
80 
100 
120 
140 
160 
180 
0 
10 
20 
30 
40 
50 
60 
70 
Rank in “doing Business” measures, Israel & high-income OECD countries 
(lower numbers indicate a better rank) 
Ease of Doing Business Rank (lef axis) 
Getting Credit 
Paying Taxes 
Protecting Minority Investors 
Enforcing Contracts
0.46 
0.54 
0.49 
0.34 
0.39 
0.38 
0.36 
0.2 
0.25 
0.3 
0.35 
0.4 
0.45 
0.5 
0.55 
0.6 
9 
Gini index for inequality* 1988-2010 
Source: National Insurance Institute of Israel, CBS 
*Concatenated series which correct for changes to the settings and definitions, except the data for 2012. 
Economic income inequality 
Net income inequality
69.7% 
59.7% 
50.3% 
20.3% 
23.0% 
23.1% 
9.9% 
17.2% 
26.6% 
0% 
10% 
20% 
30% 
40% 
50% 
60% 
70% 
80% 
2009 
2034 
2059 
Ultra-Orthodox Jews 
Arabs 
Jews, excluding Ultra-Othodox 
Macroeconomic background 
Adverse Demographic Dynamics 
Unprecedented demographic changes, expected to occur in the coming decades, pose complicated challenges.
0 
1 
2 
3 
4 
5 
6 
7 
2009 
2010 
2011 
2012 
2013 
2014 
2015 
2016 
2017 
2018 
2019 
2020 
11 
Budget Deficit Targets (as percent of GDP) 
Targets 2009 
Targets 2013 
Targets 2014
12 
Prosperity-Promoting Policies 
Market-friendly vs. government-controlled economy 
Flexible labor markets vs. excessive regulation and “workers’ rights” 
Professional, long-term considerations vs. political, populist, short-term approach 
The role of public education
80 
90 
100 
110 
120 
130 
140 
150 
1994 
1995 
1996 
1997 
1998 
1999 
2000 
2001 
2002 
2003 
2004 
2005 
2006 
2007 
2008 
2009 
2010 
2011 
2012 
2013 
2014 
Figure 1. Real Apartment Prices 
(In terms of the Consumer Price Index, excluding housing) 
Index (1994 = 100); data refer to January of each year
10.9 
11.7 
12.0 
12.0 
12.4 
12.8 
13.0 
13.1 
9 
10 
11 
12 
13 
14 
2006 
2007 
2008 
2009 
2010 
2011 
2012 
2013 
Figure 2. Per capita housing services share of GDP 
(in thousands of shekels per capita, chained data, 2010 prices)
80 
85 
90 
95 
100 
105 
110 
115 
120 
1999 
2000 
2001 
2002 
2003 
2004 
2005 
2006 
2007 
2008 
2009 
2010 
2011 
2012 
2013 
2014 
Figure 4. The ratio between apartment prices (the value of the property) and rental prices (the value of housing services) 
Index (1999 = 100); data refer to January of each year
68.8 
84.1 
78.7 
79.1 
78.4 
73.8 
69.8 
68.6 
63.1 
54.1 
38.6 
0 
10 
20 
30 
40 
50 
60 
70 
80 
90 
All 
households 
10st decile 
9st decile 
8st decile 
7st decile 
6st decile 
5st decile 
4st decile 
3st decile 
2st decile 
1st decile 
Figure 5. Percentage of households living in own apartments
974 
2,035 
1,406 
1,233 
1,090 
947 
815 
774 
618 
497 
331 
0 
500 
1000 
1500 
2000 
2500 
All 
households 
10st decile 
9st decile 
8st decile 
7st decile 
6st decile 
5st decile 
4st decile 
3st decile 
2st decile 
1st decile 
Figure 7. Value of an owned apartment (in thousands of shekels) – the average for all households in each decile
The 0% VAT proposed policy 
From a political economy perspective – almost impossible to terminate it in the future 
Imposes a huge fiscal cost – at least 50 billion NIS in the first 20 years 
There is no such thing as a free lunch – the plan will necessarily result in higher tax rates and/or lower level of public services  higher burden on the population 
Creates new distortions in the tax system  high probability of additional VAT exemptions  higher tax rates  negative impact on growth 
Requires a cumbersome and expensive system of price controls 
Even with such a system, some (or even most) of the benefit will go to homebuilders 
The rest of the benefit will go to high-income households
In the department of economy, an act, a habit, an institution, a law, gives birth not only to an effect, but to a series of effects. Of these effects, the first only is immediate; it manifests itself simultaneously with its cause - it is seen. The others unfold in succession - they are not seen: it is well for us, if they are foreseen. Between a good and a bad economist this constitutes the whole difference - the one takes account of the visible effect; the other takes account both of the effects which are seen, and also of those which it is necessary to foresee. Now this difference is enormous, for it almost always happens that when the immediate consequence is favourable, the ultimate consequences are fatal, and the converse. Hence it follows that the bad economist pursues a small present good, which will be followed by a great evil to come, while the true economist pursues a great good to come, - at the risk of a small present evil. 
That Which is Seen, and That Which is Not Seen 
Frederic Bastiat, 1850 
The zero-VAT plan is not intended for economists 
Yair Lapid, 2014

More Related Content

Viewers also liked

Pp army english (1)
Pp army english (1)Pp army english (1)
Pp army english (1)Anochi.com.
 
Sortida de figueres
Sortida de figueresSortida de figueres
Sortida de figueresmontboro
 
Maremma networking lezione del 7:11:2014
Maremma networking lezione del 7:11:2014Maremma networking lezione del 7:11:2014
Maremma networking lezione del 7:11:2014VISITMAREMMA
 
BB&T John Allison tstatement to congress
BB&T John Allison tstatement to congressBB&T John Allison tstatement to congress
BB&T John Allison tstatement to congressAnochi.com.
 
מזכר בנושא חוק הספרים
מזכר בנושא חוק הספריםמזכר בנושא חוק הספרים
מזכר בנושא חוק הספריםAnochi.com.
 
El país on vaig néixer. jorge
El país on vaig néixer. jorgeEl país on vaig néixer. jorge
El país on vaig néixer. jorgemontboro
 
Dr. Yaron Brook on TheMarker 12/2013
Dr. Yaron Brook on TheMarker 12/2013Dr. Yaron Brook on TheMarker 12/2013
Dr. Yaron Brook on TheMarker 12/2013Anochi.com.
 
Relazione fb tagliaferri
Relazione fb tagliaferriRelazione fb tagliaferri
Relazione fb tagliaferriVISITMAREMMA
 
מחירי מזון, אינפלציה ועירעור יציבות עולמית JIMS
מחירי מזון, אינפלציה ועירעור יציבות עולמית JIMSמחירי מזון, אינפלציה ועירעור יציבות עולמית JIMS
מחירי מזון, אינפלציה ועירעור יציבות עולמית JIMSAnochi.com.
 
פרופ אורי מרינוב על ההתנגדות לכביש 6
פרופ אורי מרינוב על ההתנגדות לכביש 6פרופ אורי מרינוב על ההתנגדות לכביש 6
פרופ אורי מרינוב על ההתנגדות לכביש 6Anochi.com.
 
מצגת מפגש 5 שכל OPAR
מצגת מפגש 5   שכל OPARמצגת מפגש 5   שכל OPAR
מצגת מפגש 5 שכל OPARAnochi.com.
 
Presentacion 25 de noviembre
Presentacion 25 de noviembrePresentacion 25 de noviembre
Presentacion 25 de noviembreJavieralgeciras
 
Mistakes I Have Made: Collected Project Management Failures
Mistakes I Have Made: Collected Project Management FailuresMistakes I Have Made: Collected Project Management Failures
Mistakes I Have Made: Collected Project Management FailuresAmye Scavarda
 
הרצאה של ורון 2009 משבר האלמוגים בריף הגדול
הרצאה של ורון 2009 משבר האלמוגים בריף הגדולהרצאה של ורון 2009 משבר האלמוגים בריף הגדול
הרצאה של ורון 2009 משבר האלמוגים בריף הגדולAnochi.com.
 
Dodge ram 3500
Dodge ram 3500Dodge ram 3500
Dodge ram 3500ajgball12
 
תיאור וניתוח שוק הדירות להשכרה והשפעת רגולציה מוצעת על הגבלת שיעור העליה בשכר...
תיאור וניתוח שוק הדירות להשכרה והשפעת רגולציה מוצעת על הגבלת שיעור העליה בשכר...תיאור וניתוח שוק הדירות להשכרה והשפעת רגולציה מוצעת על הגבלת שיעור העליה בשכר...
תיאור וניתוח שוק הדירות להשכרה והשפעת רגולציה מוצעת על הגבלת שיעור העליה בשכר...Anochi.com.
 

Viewers also liked (20)

Pp army english (1)
Pp army english (1)Pp army english (1)
Pp army english (1)
 
Sortida de figueres
Sortida de figueresSortida de figueres
Sortida de figueres
 
Maremma networking lezione del 7:11:2014
Maremma networking lezione del 7:11:2014Maremma networking lezione del 7:11:2014
Maremma networking lezione del 7:11:2014
 
BB&T John Allison tstatement to congress
BB&T John Allison tstatement to congressBB&T John Allison tstatement to congress
BB&T John Allison tstatement to congress
 
מזכר בנושא חוק הספרים
מזכר בנושא חוק הספריםמזכר בנושא חוק הספרים
מזכר בנושא חוק הספרים
 
El país on vaig néixer. jorge
El país on vaig néixer. jorgeEl país on vaig néixer. jorge
El país on vaig néixer. jorge
 
Dr. Yaron Brook on TheMarker 12/2013
Dr. Yaron Brook on TheMarker 12/2013Dr. Yaron Brook on TheMarker 12/2013
Dr. Yaron Brook on TheMarker 12/2013
 
Relazione fb tagliaferri
Relazione fb tagliaferriRelazione fb tagliaferri
Relazione fb tagliaferri
 
P pbooks
P pbooksP pbooks
P pbooks
 
מחירי מזון, אינפלציה ועירעור יציבות עולמית JIMS
מחירי מזון, אינפלציה ועירעור יציבות עולמית JIMSמחירי מזון, אינפלציה ועירעור יציבות עולמית JIMS
מחירי מזון, אינפלציה ועירעור יציבות עולמית JIMS
 
פרופ אורי מרינוב על ההתנגדות לכביש 6
פרופ אורי מרינוב על ההתנגדות לכביש 6פרופ אורי מרינוב על ההתנגדות לכביש 6
פרופ אורי מרינוב על ההתנגדות לכביש 6
 
מצגת מפגש 5 שכל OPAR
מצגת מפגש 5   שכל OPARמצגת מפגש 5   שכל OPAR
מצגת מפגש 5 שכל OPAR
 
Presentacion 25 de noviembre
Presentacion 25 de noviembrePresentacion 25 de noviembre
Presentacion 25 de noviembre
 
West nile
West nileWest nile
West nile
 
Mistakes I Have Made: Collected Project Management Failures
Mistakes I Have Made: Collected Project Management FailuresMistakes I Have Made: Collected Project Management Failures
Mistakes I Have Made: Collected Project Management Failures
 
הרצאה של ורון 2009 משבר האלמוגים בריף הגדול
הרצאה של ורון 2009 משבר האלמוגים בריף הגדולהרצאה של ורון 2009 משבר האלמוגים בריף הגדול
הרצאה של ורון 2009 משבר האלמוגים בריף הגדול
 
Dodge ram 3500
Dodge ram 3500Dodge ram 3500
Dodge ram 3500
 
Eguides genova
Eguides genovaEguides genova
Eguides genova
 
תיאור וניתוח שוק הדירות להשכרה והשפעת רגולציה מוצעת על הגבלת שיעור העליה בשכר...
תיאור וניתוח שוק הדירות להשכרה והשפעת רגולציה מוצעת על הגבלת שיעור העליה בשכר...תיאור וניתוח שוק הדירות להשכרה והשפעת רגולציה מוצעת על הגבלת שיעור העליה בשכר...
תיאור וניתוח שוק הדירות להשכרה והשפעת רגולציה מוצעת על הגבלת שיעור העליה בשכר...
 
การใช้เหตุผล
การใช้เหตุผลการใช้เหตุผล
การใช้เหตุผล
 

Similar to Social Protest, Housing Regulation, and Economic Policy Debates

Slides Ed1
Slides Ed1Slides Ed1
Slides Ed1lizardyh
 
A Macroeconomic Framework for Growth under the New Normal
A Macroeconomic Framework for Growth under the New NormalA Macroeconomic Framework for Growth under the New Normal
A Macroeconomic Framework for Growth under the New NormalEconomic Research Forum
 
2014.11.Microstability naec20nov2014 print version
2014.11.Microstability naec20nov2014 print version2014.11.Microstability naec20nov2014 print version
2014.11.Microstability naec20nov2014 print versionOECD_NAEC
 
Economic megatrends
Economic megatrendsEconomic megatrends
Economic megatrendsPurpose+
 
Jim Wiesemeyer - Washington Update: Will Dysfunctional Washington Ever Function
Jim Wiesemeyer - Washington Update: Will Dysfunctional Washington Ever FunctionJim Wiesemeyer - Washington Update: Will Dysfunctional Washington Ever Function
Jim Wiesemeyer - Washington Update: Will Dysfunctional Washington Ever FunctionJohn Blue
 
Economic Analysis of Malaysia
Economic Analysis of MalaysiaEconomic Analysis of Malaysia
Economic Analysis of MalaysiaRahul Mandre
 
Invest in Canada
Invest in CanadaInvest in Canada
Invest in CanadaAssertiva
 
2014.11.20 - NAEC Seminar - Microstability
2014.11.20 - NAEC Seminar - Microstability2014.11.20 - NAEC Seminar - Microstability
2014.11.20 - NAEC Seminar - MicrostabilityOECD_NAEC
 
The Wind of Change: Economic and Financial Outlook
The Wind of Change: Economic and Financial OutlookThe Wind of Change: Economic and Financial Outlook
The Wind of Change: Economic and Financial OutlookLatvijas Banka
 
KNOW YOUR GAME Seminar Notes
KNOW YOUR GAME Seminar NotesKNOW YOUR GAME Seminar Notes
KNOW YOUR GAME Seminar NotesSAPTG
 
Israel economics 2013 Q2
Israel economics  2013  Q2Israel economics  2013  Q2
Israel economics 2013 Q2Dmitry Tseitlin
 
roland_berger_trend_compendium_2050_compact_version.pdf
roland_berger_trend_compendium_2050_compact_version.pdfroland_berger_trend_compendium_2050_compact_version.pdf
roland_berger_trend_compendium_2050_compact_version.pdfChris Skinner
 
Implications of Agricultural Productivity Growth for Structural Change and ...
Implications of Agricultural Productivity Growth for Structural Change and ...Implications of Agricultural Productivity Growth for Structural Change and ...
Implications of Agricultural Productivity Growth for Structural Change and ...essp2
 
Global Developments and Regional Implications
Global Developments and Regional ImplicationsGlobal Developments and Regional Implications
Global Developments and Regional ImplicationsSDGsPlus
 

Similar to Social Protest, Housing Regulation, and Economic Policy Debates (20)

Slides Ed1
Slides Ed1Slides Ed1
Slides Ed1
 
A Macroeconomic Framework for Growth under the New Normal
A Macroeconomic Framework for Growth under the New NormalA Macroeconomic Framework for Growth under the New Normal
A Macroeconomic Framework for Growth under the New Normal
 
2014.11.Microstability naec20nov2014 print version
2014.11.Microstability naec20nov2014 print version2014.11.Microstability naec20nov2014 print version
2014.11.Microstability naec20nov2014 print version
 
Paul Dorosh - Agriculture Productivity Growth and Rural Welfare: Insights fro...
Paul Dorosh - Agriculture Productivity Growth and Rural Welfare: Insights fro...Paul Dorosh - Agriculture Productivity Growth and Rural Welfare: Insights fro...
Paul Dorosh - Agriculture Productivity Growth and Rural Welfare: Insights fro...
 
Economic megatrends
Economic megatrendsEconomic megatrends
Economic megatrends
 
Greek economy 2018
Greek economy 2018Greek economy 2018
Greek economy 2018
 
Jim Wiesemeyer - Washington Update: Will Dysfunctional Washington Ever Function
Jim Wiesemeyer - Washington Update: Will Dysfunctional Washington Ever FunctionJim Wiesemeyer - Washington Update: Will Dysfunctional Washington Ever Function
Jim Wiesemeyer - Washington Update: Will Dysfunctional Washington Ever Function
 
Economic Analysis of Malaysia
Economic Analysis of MalaysiaEconomic Analysis of Malaysia
Economic Analysis of Malaysia
 
61 minutes EBMS amsterdam
61 minutes EBMS amsterdam61 minutes EBMS amsterdam
61 minutes EBMS amsterdam
 
Invest in Canada
Invest in CanadaInvest in Canada
Invest in Canada
 
2014.11.20 - NAEC Seminar - Microstability
2014.11.20 - NAEC Seminar - Microstability2014.11.20 - NAEC Seminar - Microstability
2014.11.20 - NAEC Seminar - Microstability
 
Brown Bag Luncheon: Naomi Fink on inflation and retirement
Brown Bag Luncheon: Naomi Fink on inflation and retirementBrown Bag Luncheon: Naomi Fink on inflation and retirement
Brown Bag Luncheon: Naomi Fink on inflation and retirement
 
The Wind of Change: Economic and Financial Outlook
The Wind of Change: Economic and Financial OutlookThe Wind of Change: Economic and Financial Outlook
The Wind of Change: Economic and Financial Outlook
 
KNOW YOUR GAME Seminar Notes
KNOW YOUR GAME Seminar NotesKNOW YOUR GAME Seminar Notes
KNOW YOUR GAME Seminar Notes
 
Israel economics 2013 Q2
Israel economics  2013  Q2Israel economics  2013  Q2
Israel economics 2013 Q2
 
roland_berger_trend_compendium_2050_compact_version.pdf
roland_berger_trend_compendium_2050_compact_version.pdfroland_berger_trend_compendium_2050_compact_version.pdf
roland_berger_trend_compendium_2050_compact_version.pdf
 
Egypt in economics
Egypt in economicsEgypt in economics
Egypt in economics
 
Implications of Agricultural Productivity Growth for Structural Change and ...
Implications of Agricultural Productivity Growth for Structural Change and ...Implications of Agricultural Productivity Growth for Structural Change and ...
Implications of Agricultural Productivity Growth for Structural Change and ...
 
Hunger and Food Security
Hunger and Food SecurityHunger and Food Security
Hunger and Food Security
 
Global Developments and Regional Implications
Global Developments and Regional ImplicationsGlobal Developments and Regional Implications
Global Developments and Regional Implications
 

More from Anochi.com.

רחוק מהשפעת אי החום העירוני
רחוק מהשפעת אי החום העירונירחוק מהשפעת אי החום העירוני
רחוק מהשפעת אי החום העירוניAnochi.com.
 
מדי גאות מאת מיכה קליין
מדי גאות מאת מיכה קלייןמדי גאות מאת מיכה קליין
מדי גאות מאת מיכה קלייןAnochi.com.
 
שינויי טמפרטורה באנטרקטיקה
שינויי טמפרטורה באנטרקטיקהשינויי טמפרטורה באנטרקטיקה
שינויי טמפרטורה באנטרקטיקהAnochi.com.
 
מצע-מפלגת-חופש-כלכלי.pdf
מצע-מפלגת-חופש-כלכלי.pdfמצע-מפלגת-חופש-כלכלי.pdf
מצע-מפלגת-חופש-כלכלי.pdfAnochi.com.
 
תשלום לחיילים שראל וארד פברואר 2022.pdf
תשלום לחיילים שראל וארד פברואר 2022.pdfתשלום לחיילים שראל וארד פברואר 2022.pdf
תשלום לחיילים שראל וארד פברואר 2022.pdfAnochi.com.
 
6th Atlas Award 2022
6th Atlas Award 20226th Atlas Award 2022
6th Atlas Award 2022Anochi.com.
 
Arafat Interview Beirut
Arafat Interview BeirutArafat Interview Beirut
Arafat Interview BeirutAnochi.com.
 
july22 דוח השמט.pdf
july22 דוח השמט.pdfjuly22 דוח השמט.pdf
july22 דוח השמט.pdfAnochi.com.
 
גלי חום בדיווחים היסטוריים
גלי חום בדיווחים היסטורייםגלי חום בדיווחים היסטוריים
גלי חום בדיווחים היסטורייםAnochi.com.
 
FaxIn_2022-07-12_13-01-57_de43b22b.pdf
FaxIn_2022-07-12_13-01-57_de43b22b.pdfFaxIn_2022-07-12_13-01-57_de43b22b.pdf
FaxIn_2022-07-12_13-01-57_de43b22b.pdfAnochi.com.
 
Files_Shimuah_yaad_2030n_work_n.pdf
Files_Shimuah_yaad_2030n_work_n.pdfFiles_Shimuah_yaad_2030n_work_n.pdf
Files_Shimuah_yaad_2030n_work_n.pdfAnochi.com.
 
מבנה תעריך החשמל 2019.pdf
מבנה תעריך החשמל 2019.pdfמבנה תעריך החשמל 2019.pdf
מבנה תעריך החשמל 2019.pdfAnochi.com.
 
Climate March of Folly by Boaz Arad - EN.pdf
Climate March of Folly by Boaz Arad - EN.pdfClimate March of Folly by Boaz Arad - EN.pdf
Climate March of Folly by Boaz Arad - EN.pdfAnochi.com.
 
The Costs of Decarbonisation
The Costs of DecarbonisationThe Costs of Decarbonisation
The Costs of DecarbonisationAnochi.com.
 
מערכי שיעור למצעד האקלים החברה להגנת הטבע 2020
מערכי שיעור למצעד האקלים החברה להגנת הטבע 2020מערכי שיעור למצעד האקלים החברה להגנת הטבע 2020
מערכי שיעור למצעד האקלים החברה להגנת הטבע 2020Anochi.com.
 
Guns and Crime in Israel
Guns and Crime in IsraelGuns and Crime in Israel
Guns and Crime in IsraelAnochi.com.
 
No electricity 18 3-22
No electricity  18 3-22No electricity  18 3-22
No electricity 18 3-22Anochi.com.
 
Capitalism and war
Capitalism and warCapitalism and war
Capitalism and warAnochi.com.
 
Atlas event at augury
Atlas event at auguryAtlas event at augury
Atlas event at auguryAnochi.com.
 

More from Anochi.com. (20)

רחוק מהשפעת אי החום העירוני
רחוק מהשפעת אי החום העירונירחוק מהשפעת אי החום העירוני
רחוק מהשפעת אי החום העירוני
 
מדי גאות מאת מיכה קליין
מדי גאות מאת מיכה קלייןמדי גאות מאת מיכה קליין
מדי גאות מאת מיכה קליין
 
שינויי טמפרטורה באנטרקטיקה
שינויי טמפרטורה באנטרקטיקהשינויי טמפרטורה באנטרקטיקה
שינויי טמפרטורה באנטרקטיקה
 
מצע-מפלגת-חופש-כלכלי.pdf
מצע-מפלגת-חופש-כלכלי.pdfמצע-מפלגת-חופש-כלכלי.pdf
מצע-מפלגת-חופש-כלכלי.pdf
 
תשלום לחיילים שראל וארד פברואר 2022.pdf
תשלום לחיילים שראל וארד פברואר 2022.pdfתשלום לחיילים שראל וארד פברואר 2022.pdf
תשלום לחיילים שראל וארד פברואר 2022.pdf
 
6th Atlas Award 2022
6th Atlas Award 20226th Atlas Award 2022
6th Atlas Award 2022
 
Arafat Interview Beirut
Arafat Interview BeirutArafat Interview Beirut
Arafat Interview Beirut
 
july22 דוח השמט.pdf
july22 דוח השמט.pdfjuly22 דוח השמט.pdf
july22 דוח השמט.pdf
 
גלי חום בדיווחים היסטוריים
גלי חום בדיווחים היסטורייםגלי חום בדיווחים היסטוריים
גלי חום בדיווחים היסטוריים
 
FaxIn_2022-07-12_13-01-57_de43b22b.pdf
FaxIn_2022-07-12_13-01-57_de43b22b.pdfFaxIn_2022-07-12_13-01-57_de43b22b.pdf
FaxIn_2022-07-12_13-01-57_de43b22b.pdf
 
Files_Shimuah_yaad_2030n_work_n.pdf
Files_Shimuah_yaad_2030n_work_n.pdfFiles_Shimuah_yaad_2030n_work_n.pdf
Files_Shimuah_yaad_2030n_work_n.pdf
 
מבנה תעריך החשמל 2019.pdf
מבנה תעריך החשמל 2019.pdfמבנה תעריך החשמל 2019.pdf
מבנה תעריך החשמל 2019.pdf
 
Climate March of Folly by Boaz Arad - EN.pdf
Climate March of Folly by Boaz Arad - EN.pdfClimate March of Folly by Boaz Arad - EN.pdf
Climate March of Folly by Boaz Arad - EN.pdf
 
The Costs of Decarbonisation
The Costs of DecarbonisationThe Costs of Decarbonisation
The Costs of Decarbonisation
 
מערכי שיעור למצעד האקלים החברה להגנת הטבע 2020
מערכי שיעור למצעד האקלים החברה להגנת הטבע 2020מערכי שיעור למצעד האקלים החברה להגנת הטבע 2020
מערכי שיעור למצעד האקלים החברה להגנת הטבע 2020
 
Guns and Crime in Israel
Guns and Crime in IsraelGuns and Crime in Israel
Guns and Crime in Israel
 
re_190521.pdf
re_190521.pdfre_190521.pdf
re_190521.pdf
 
No electricity 18 3-22
No electricity  18 3-22No electricity  18 3-22
No electricity 18 3-22
 
Capitalism and war
Capitalism and warCapitalism and war
Capitalism and war
 
Atlas event at augury
Atlas event at auguryAtlas event at augury
Atlas event at augury
 

Recently uploaded

Overview of Inkel Unlisted Shares Price.
Overview of Inkel Unlisted Shares Price.Overview of Inkel Unlisted Shares Price.
Overview of Inkel Unlisted Shares Price.Precize Formely Leadoff
 
Unveiling Business Expansion Trends in 2024
Unveiling Business Expansion Trends in 2024Unveiling Business Expansion Trends in 2024
Unveiling Business Expansion Trends in 2024Champak Jhagmag
 
INTERNATIONAL TRADE INSTITUTIONS[6].pptx
INTERNATIONAL TRADE INSTITUTIONS[6].pptxINTERNATIONAL TRADE INSTITUTIONS[6].pptx
INTERNATIONAL TRADE INSTITUTIONS[6].pptxaymenkhalfallah23
 
NO1 Certified Amil Baba In Lahore Kala Jadu In Lahore Best Amil In Lahore Ami...
NO1 Certified Amil Baba In Lahore Kala Jadu In Lahore Best Amil In Lahore Ami...NO1 Certified Amil Baba In Lahore Kala Jadu In Lahore Best Amil In Lahore Ami...
NO1 Certified Amil Baba In Lahore Kala Jadu In Lahore Best Amil In Lahore Ami...Amil baba
 
NO1 Certified Black Magic Specialist Expert In Bahawalpur, Sargodha, Sialkot,...
NO1 Certified Black Magic Specialist Expert In Bahawalpur, Sargodha, Sialkot,...NO1 Certified Black Magic Specialist Expert In Bahawalpur, Sargodha, Sialkot,...
NO1 Certified Black Magic Specialist Expert In Bahawalpur, Sargodha, Sialkot,...Amil baba
 
Uae-NO1 Pakistani Amil Baba Real Amil baba In Pakistan Najoomi Baba in Pakist...
Uae-NO1 Pakistani Amil Baba Real Amil baba In Pakistan Najoomi Baba in Pakist...Uae-NO1 Pakistani Amil Baba Real Amil baba In Pakistan Najoomi Baba in Pakist...
Uae-NO1 Pakistani Amil Baba Real Amil baba In Pakistan Najoomi Baba in Pakist...Amil baba
 
2024-04-09 - Pension Playpen roundtable - slides.pptx
2024-04-09 - Pension Playpen roundtable - slides.pptx2024-04-09 - Pension Playpen roundtable - slides.pptx
2024-04-09 - Pension Playpen roundtable - slides.pptxHenry Tapper
 
《加拿大本地办假证-寻找办理Dalhousie毕业证和达尔豪斯大学毕业证书的中介代理》
《加拿大本地办假证-寻找办理Dalhousie毕业证和达尔豪斯大学毕业证书的中介代理》《加拿大本地办假证-寻找办理Dalhousie毕业证和达尔豪斯大学毕业证书的中介代理》
《加拿大本地办假证-寻找办理Dalhousie毕业证和达尔豪斯大学毕业证书的中介代理》rnrncn29
 
Stock Market Brief Deck FOR 4/17 video.pdf
Stock Market Brief Deck FOR 4/17 video.pdfStock Market Brief Deck FOR 4/17 video.pdf
Stock Market Brief Deck FOR 4/17 video.pdfMichael Silva
 
Unveiling Poonawalla Fincorp’s Phenomenal Performance Under Abhay Bhutada’s L...
Unveiling Poonawalla Fincorp’s Phenomenal Performance Under Abhay Bhutada’s L...Unveiling Poonawalla Fincorp’s Phenomenal Performance Under Abhay Bhutada’s L...
Unveiling Poonawalla Fincorp’s Phenomenal Performance Under Abhay Bhutada’s L...beulahfernandes8
 
Banking: Commercial and Central Banking.pptx
Banking: Commercial and Central Banking.pptxBanking: Commercial and Central Banking.pptx
Banking: Commercial and Central Banking.pptxANTHONYAKINYOSOYE1
 
Financial analysis on Risk and Return.ppt
Financial analysis on Risk and Return.pptFinancial analysis on Risk and Return.ppt
Financial analysis on Risk and Return.ppttadegebreyesus
 
Unit 4.1 financial markets operations .pdf
Unit 4.1 financial markets operations .pdfUnit 4.1 financial markets operations .pdf
Unit 4.1 financial markets operations .pdfSatyamSinghParihar2
 
Economic Risk Factor Update: April 2024 [SlideShare]
Economic Risk Factor Update: April 2024 [SlideShare]Economic Risk Factor Update: April 2024 [SlideShare]
Economic Risk Factor Update: April 2024 [SlideShare]Commonwealth
 
NO1 Certified Black Magic Removal in Uk kala jadu Specialist kala jadu for Lo...
NO1 Certified Black Magic Removal in Uk kala jadu Specialist kala jadu for Lo...NO1 Certified Black Magic Removal in Uk kala jadu Specialist kala jadu for Lo...
NO1 Certified Black Magic Removal in Uk kala jadu Specialist kala jadu for Lo...Amil baba
 
2024 Q1 Crypto Industry Report | CoinGecko
2024 Q1 Crypto Industry Report | CoinGecko2024 Q1 Crypto Industry Report | CoinGecko
2024 Q1 Crypto Industry Report | CoinGeckoCoinGecko
 
Kempen ' UK DB Endgame Paper Apr 24 final3.pdf
Kempen ' UK DB Endgame Paper Apr 24 final3.pdfKempen ' UK DB Endgame Paper Apr 24 final3.pdf
Kempen ' UK DB Endgame Paper Apr 24 final3.pdfHenry Tapper
 
Uae-NO1 Black Magic Specialist In Lahore Black magic In Pakistan Kala Ilam Ex...
Uae-NO1 Black Magic Specialist In Lahore Black magic In Pakistan Kala Ilam Ex...Uae-NO1 Black Magic Specialist In Lahore Black magic In Pakistan Kala Ilam Ex...
Uae-NO1 Black Magic Specialist In Lahore Black magic In Pakistan Kala Ilam Ex...Amil baba
 
cost of capital questions financial management
cost of capital questions financial managementcost of capital questions financial management
cost of capital questions financial managementtanmayarora23
 
Market Morning Updates for 16th April 2024
Market Morning Updates for 16th April 2024Market Morning Updates for 16th April 2024
Market Morning Updates for 16th April 2024Devarsh Vakil
 

Recently uploaded (20)

Overview of Inkel Unlisted Shares Price.
Overview of Inkel Unlisted Shares Price.Overview of Inkel Unlisted Shares Price.
Overview of Inkel Unlisted Shares Price.
 
Unveiling Business Expansion Trends in 2024
Unveiling Business Expansion Trends in 2024Unveiling Business Expansion Trends in 2024
Unveiling Business Expansion Trends in 2024
 
INTERNATIONAL TRADE INSTITUTIONS[6].pptx
INTERNATIONAL TRADE INSTITUTIONS[6].pptxINTERNATIONAL TRADE INSTITUTIONS[6].pptx
INTERNATIONAL TRADE INSTITUTIONS[6].pptx
 
NO1 Certified Amil Baba In Lahore Kala Jadu In Lahore Best Amil In Lahore Ami...
NO1 Certified Amil Baba In Lahore Kala Jadu In Lahore Best Amil In Lahore Ami...NO1 Certified Amil Baba In Lahore Kala Jadu In Lahore Best Amil In Lahore Ami...
NO1 Certified Amil Baba In Lahore Kala Jadu In Lahore Best Amil In Lahore Ami...
 
NO1 Certified Black Magic Specialist Expert In Bahawalpur, Sargodha, Sialkot,...
NO1 Certified Black Magic Specialist Expert In Bahawalpur, Sargodha, Sialkot,...NO1 Certified Black Magic Specialist Expert In Bahawalpur, Sargodha, Sialkot,...
NO1 Certified Black Magic Specialist Expert In Bahawalpur, Sargodha, Sialkot,...
 
Uae-NO1 Pakistani Amil Baba Real Amil baba In Pakistan Najoomi Baba in Pakist...
Uae-NO1 Pakistani Amil Baba Real Amil baba In Pakistan Najoomi Baba in Pakist...Uae-NO1 Pakistani Amil Baba Real Amil baba In Pakistan Najoomi Baba in Pakist...
Uae-NO1 Pakistani Amil Baba Real Amil baba In Pakistan Najoomi Baba in Pakist...
 
2024-04-09 - Pension Playpen roundtable - slides.pptx
2024-04-09 - Pension Playpen roundtable - slides.pptx2024-04-09 - Pension Playpen roundtable - slides.pptx
2024-04-09 - Pension Playpen roundtable - slides.pptx
 
《加拿大本地办假证-寻找办理Dalhousie毕业证和达尔豪斯大学毕业证书的中介代理》
《加拿大本地办假证-寻找办理Dalhousie毕业证和达尔豪斯大学毕业证书的中介代理》《加拿大本地办假证-寻找办理Dalhousie毕业证和达尔豪斯大学毕业证书的中介代理》
《加拿大本地办假证-寻找办理Dalhousie毕业证和达尔豪斯大学毕业证书的中介代理》
 
Stock Market Brief Deck FOR 4/17 video.pdf
Stock Market Brief Deck FOR 4/17 video.pdfStock Market Brief Deck FOR 4/17 video.pdf
Stock Market Brief Deck FOR 4/17 video.pdf
 
Unveiling Poonawalla Fincorp’s Phenomenal Performance Under Abhay Bhutada’s L...
Unveiling Poonawalla Fincorp’s Phenomenal Performance Under Abhay Bhutada’s L...Unveiling Poonawalla Fincorp’s Phenomenal Performance Under Abhay Bhutada’s L...
Unveiling Poonawalla Fincorp’s Phenomenal Performance Under Abhay Bhutada’s L...
 
Banking: Commercial and Central Banking.pptx
Banking: Commercial and Central Banking.pptxBanking: Commercial and Central Banking.pptx
Banking: Commercial and Central Banking.pptx
 
Financial analysis on Risk and Return.ppt
Financial analysis on Risk and Return.pptFinancial analysis on Risk and Return.ppt
Financial analysis on Risk and Return.ppt
 
Unit 4.1 financial markets operations .pdf
Unit 4.1 financial markets operations .pdfUnit 4.1 financial markets operations .pdf
Unit 4.1 financial markets operations .pdf
 
Economic Risk Factor Update: April 2024 [SlideShare]
Economic Risk Factor Update: April 2024 [SlideShare]Economic Risk Factor Update: April 2024 [SlideShare]
Economic Risk Factor Update: April 2024 [SlideShare]
 
NO1 Certified Black Magic Removal in Uk kala jadu Specialist kala jadu for Lo...
NO1 Certified Black Magic Removal in Uk kala jadu Specialist kala jadu for Lo...NO1 Certified Black Magic Removal in Uk kala jadu Specialist kala jadu for Lo...
NO1 Certified Black Magic Removal in Uk kala jadu Specialist kala jadu for Lo...
 
2024 Q1 Crypto Industry Report | CoinGecko
2024 Q1 Crypto Industry Report | CoinGecko2024 Q1 Crypto Industry Report | CoinGecko
2024 Q1 Crypto Industry Report | CoinGecko
 
Kempen ' UK DB Endgame Paper Apr 24 final3.pdf
Kempen ' UK DB Endgame Paper Apr 24 final3.pdfKempen ' UK DB Endgame Paper Apr 24 final3.pdf
Kempen ' UK DB Endgame Paper Apr 24 final3.pdf
 
Uae-NO1 Black Magic Specialist In Lahore Black magic In Pakistan Kala Ilam Ex...
Uae-NO1 Black Magic Specialist In Lahore Black magic In Pakistan Kala Ilam Ex...Uae-NO1 Black Magic Specialist In Lahore Black magic In Pakistan Kala Ilam Ex...
Uae-NO1 Black Magic Specialist In Lahore Black magic In Pakistan Kala Ilam Ex...
 
cost of capital questions financial management
cost of capital questions financial managementcost of capital questions financial management
cost of capital questions financial management
 
Market Morning Updates for 16th April 2024
Market Morning Updates for 16th April 2024Market Morning Updates for 16th April 2024
Market Morning Updates for 16th April 2024
 

Social Protest, Housing Regulation, and Economic Policy Debates

  • 1. Social Protest, Housing, Regulation, and more … Dr. Michael Sarel, Head of Kohelet Economics Forum December 2014
  • 2. Compared with the US, the Euro area and the OECD, the prices in Israel in most consumption sections, are not very high (as of 2011) 129 120 119 109 103 103 99 97 94 60 80 100 120 140 160 Communication (22) Transport (20) Food and non-alcoholic beverages (3) Clothing and footwear (16) Household furnishings, equipment and maintenance (18) Miscellaneous goods and services (26) Housing, water, electricity, gas and other fuels (17) Health (19) Education (24) Israel United States Euro area (17 countries) OECD - Total Source: OECD, 2011 Standard of living
  • 3. In the food section, Israel is expensive in all categories except for one 116 84 103 60 80 100 120 140 160 Non-alcoholic beverages (12) Milk, cheese and eggs (8) Oils and fats (9) Alcoholic beverages (14) Other food (11) Bread and cereals (5) Fish (7) Meat (6) Food and non- alcoholic beverages (3) Food (4) Alcoholic beverages, tobacco and narcotics (13) Fruits, vegetables, potatoes (10) Israel United States Euro area (17 countries) OECD - Total Source: OECD, 2011 Standard of living
  • 4. Price Level and Income per Capita Level -2 -1.5 -1 -0.5 0 0.5 1 1.5 5 6 7 8 9 10 11 12
  • 5. 10.3% 9.7% 8.7% 7.4% 8.9% 8.0% 7.0% 6.9% 6.2% 6.6% 6.7% 6.6% 6.8% 6.6% 6.6% 6.1% 6.0% 5.9% 5.8% 5.6% 5.9% 5.9% 5.8% 5.8% 5.8% 6.0% 6.5% 6.2% 6.3% 6.3% 5.7% 58% 59% 60% 61% 62% 63% 64% 65% 66% 5% 6% 7% 8% 9% 10% 11% 12% 13% 5 Unemployment and Participation rates Ages 15+ Source: CBS Participation rates (RHS)
  • 6. 6 Employment Rate Ages 15+, 2013 Source: OECD 59.8% 55.2% 35% 40% 45% 50% 55% 60% 65% 70% 75% 80%
  • 7. Israel, as percent of weighted average of G-8 advanced economies, 1995-2011 50% 60% 70% 80% 90% 100% income per person productivity per person productivity per worker productivity per hour worked Source: PWT 8.0 database, Michael Sarel’s calculations 7
  • 8. Competitiveness (e.g. where can the next improvements in productivity come from?) 0 20 40 60 80 100 120 140 160 180 0 10 20 30 40 50 60 70 Rank in “doing Business” measures, Israel & high-income OECD countries (lower numbers indicate a better rank) Ease of Doing Business Rank (lef axis) Getting Credit Paying Taxes Protecting Minority Investors Enforcing Contracts
  • 9. 0.46 0.54 0.49 0.34 0.39 0.38 0.36 0.2 0.25 0.3 0.35 0.4 0.45 0.5 0.55 0.6 9 Gini index for inequality* 1988-2010 Source: National Insurance Institute of Israel, CBS *Concatenated series which correct for changes to the settings and definitions, except the data for 2012. Economic income inequality Net income inequality
  • 10. 69.7% 59.7% 50.3% 20.3% 23.0% 23.1% 9.9% 17.2% 26.6% 0% 10% 20% 30% 40% 50% 60% 70% 80% 2009 2034 2059 Ultra-Orthodox Jews Arabs Jews, excluding Ultra-Othodox Macroeconomic background Adverse Demographic Dynamics Unprecedented demographic changes, expected to occur in the coming decades, pose complicated challenges.
  • 11. 0 1 2 3 4 5 6 7 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 11 Budget Deficit Targets (as percent of GDP) Targets 2009 Targets 2013 Targets 2014
  • 12. 12 Prosperity-Promoting Policies Market-friendly vs. government-controlled economy Flexible labor markets vs. excessive regulation and “workers’ rights” Professional, long-term considerations vs. political, populist, short-term approach The role of public education
  • 13. 80 90 100 110 120 130 140 150 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Figure 1. Real Apartment Prices (In terms of the Consumer Price Index, excluding housing) Index (1994 = 100); data refer to January of each year
  • 14. 10.9 11.7 12.0 12.0 12.4 12.8 13.0 13.1 9 10 11 12 13 14 2006 2007 2008 2009 2010 2011 2012 2013 Figure 2. Per capita housing services share of GDP (in thousands of shekels per capita, chained data, 2010 prices)
  • 15. 80 85 90 95 100 105 110 115 120 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Figure 4. The ratio between apartment prices (the value of the property) and rental prices (the value of housing services) Index (1999 = 100); data refer to January of each year
  • 16. 68.8 84.1 78.7 79.1 78.4 73.8 69.8 68.6 63.1 54.1 38.6 0 10 20 30 40 50 60 70 80 90 All households 10st decile 9st decile 8st decile 7st decile 6st decile 5st decile 4st decile 3st decile 2st decile 1st decile Figure 5. Percentage of households living in own apartments
  • 17. 974 2,035 1,406 1,233 1,090 947 815 774 618 497 331 0 500 1000 1500 2000 2500 All households 10st decile 9st decile 8st decile 7st decile 6st decile 5st decile 4st decile 3st decile 2st decile 1st decile Figure 7. Value of an owned apartment (in thousands of shekels) – the average for all households in each decile
  • 18. The 0% VAT proposed policy From a political economy perspective – almost impossible to terminate it in the future Imposes a huge fiscal cost – at least 50 billion NIS in the first 20 years There is no such thing as a free lunch – the plan will necessarily result in higher tax rates and/or lower level of public services  higher burden on the population Creates new distortions in the tax system  high probability of additional VAT exemptions  higher tax rates  negative impact on growth Requires a cumbersome and expensive system of price controls Even with such a system, some (or even most) of the benefit will go to homebuilders The rest of the benefit will go to high-income households
  • 19. In the department of economy, an act, a habit, an institution, a law, gives birth not only to an effect, but to a series of effects. Of these effects, the first only is immediate; it manifests itself simultaneously with its cause - it is seen. The others unfold in succession - they are not seen: it is well for us, if they are foreseen. Between a good and a bad economist this constitutes the whole difference - the one takes account of the visible effect; the other takes account both of the effects which are seen, and also of those which it is necessary to foresee. Now this difference is enormous, for it almost always happens that when the immediate consequence is favourable, the ultimate consequences are fatal, and the converse. Hence it follows that the bad economist pursues a small present good, which will be followed by a great evil to come, while the true economist pursues a great good to come, - at the risk of a small present evil. That Which is Seen, and That Which is Not Seen Frederic Bastiat, 1850 The zero-VAT plan is not intended for economists Yair Lapid, 2014