The economic history of Israel is often portrayed as a story of transformation from interventionism/socialism to liberalization and market economy. This narrative is promoted both by liberal economists who praise the market-oriented reforms as well as by social-democrat activists who condemn it as the triumph of capital over labor. This book debunks the from-socialism-to-liberalization narrative. Instead, it argues that the economic history of Israel--its continuity as well as its change--can be explained on the basis of one key causal factor: the state preferences as were shaped by, on...