The household model. Income from formal labour activity increased substantially after 1967, constituting the main share of disposable household income. The recent cuts in Palestinian employment, particularly among those employed in Israel, have led to a sharp drop in labour income. The importance of household income-generating activities declined steadily after 1967. The Intifada brought some revival of these activities, as self-reliance and reduced dependence on Israel could be highly desirable for ideological reasons.
Transfers comprise both public and private transfers.
Private transfers are mainly remittances from family members working in the Gulf or in Western countries. Support among members of the extended family in the same localities is also common. The output side of the household economy model comprises various household consumption expenditures and investments. Average household consumption expenditures in the Occupied Territories increased sharply after 1967, mainly because of increased income, but also due to the decline in the self-subsistence economy. The Intifada brought a halt to this rising trend.