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Economic consequences of intifada: a sequel

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  • de Boer, P.M.C.
  • Missaglia, M.

Abstract

We give an assessment of the loss in the nominal gross domestic product (GDP) and nominal gross national income (GNI) due to twenty- seven months of intifada. It is based on the modest growth scenario given by the International Monetary Fund (IMF) and the World Bank (WB) in their first assessment of the economic developments in 2006 in Palestine. It turns out that the assessed loss is equivalent to the GDP of 1997 and the GNI in 1999: one year on two (and a quarter). Moreover, we show that our 2004 estimates of macro figures of 2002, based on a static computable general equilibrium model, are closer to the 2007 consensus estimates by IMF and WB than the 2003 estimates of IMF, based on an income-expenditure model. We argue that the shortening of the time horizon and the quantity adjustment following the dramatic shock explain why our model performs better.

Suggested Citation

  • de Boer, P.M.C. & Missaglia, M., 2007. "Economic consequences of intifada: a sequel," Econometric Institute Research Papers EI 2007-39, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    • Handle: RePEc:ems:eureir:10558
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    References listed on IDEAS

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    1. Marco Missaglia & Paul de Boer, 2004. "Food-For-Work versus Cash-For-Work: Emergency Assistance in Palestine," Economic Systems Research, Taylor & Francis Journals, vol. 16(4), pages 367-390.
    2. Paul de Boer & Marco Missaglia, 2006. "Economic consequences of intifada," Economic Systems Research, Taylor & Francis Journals, vol. 18(1), pages 97-106.
    3. Harris, John R & Todaro, Michael P, 1970. "Migration, Unemployment & Development: A Two-Sector Analysis," American Economic Review, American Economic Association, vol. 60(1), pages 126-142, March.
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    Cited by:

    1. de Boer, P.M.C., 2008. "Lack of peaceful resolution with Israel: economic cost for Palestinians," Econometric Institute Research Papers EI 2008-23, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.

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