Calculating the Costs of the Israeli-Palestinian Conflict

What will the Israeli and Palestinian economies look like in 2024? That may depend largely on how the region's longstanding conflict evolves—or fails to do so.

RAND's Costs of the Israeli-Palestinian Conflict study estimates the net costs and benefits of five scenarios, compared with the conflict's current trajectory.

Use this calculator to explore the effects of modifying key assumptions. Assumptions influence either the conflict's direct costs (expenditures) or its opportunity costs (lost opportunities).

The economic impact of each assumption draws on existing evidence, as documented in Appendix B of the full report.

NOTE: The cost effects shown are all relative to a present trends base case in 2024 and are indicated by ∆. This present trends base case assumes that (a) economic and security outcomes for both Israelis and Palestinians continue along current trajectories from 2014 to 2024, and that (b) there are no significant shocks or changes to economic, demographic, and security conditions.

All amounts are in billions (U.S. dollars, 2014).

Aggregate Cost To The International Community over 10 years

for Israelis
for Palestinians

Israelis

Direct Costs

Opportunity Costs

Total

Direct Costs

Budgetary or financial expenditures

Opportunity Costs

Missed economic opportunities

Palestinians

Direct Costs

Opportunity Costs

Refugees

Total

Direct Costs

Budgetary or financial expenditures

Opportunity Costs

Missed economic opportunities

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