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Defence Spending: Burden or Growth-Promoting?


Alexander, WRJ, Defence Spending: Burden or Growth-Promoting?, Defence and Peace Economics, 6, (1) pp. 13-25. ISSN 1043-0717 (1995) [Refereed Article]

DOI: doi:10.1080/10430719508404809


The sectoral production function model of Feder (1983) has been widely used to examine the link between defence spending and economic growth. In this paper, the model, for which too much has been claimed in some past work, is examined, and the case is made for using growth in real non‐defence output rather than growth in real aggregate output (inclusive of military spending) as the dependent variable. Attention is restricted to a small group of OECD countries for which reliable labour force and capital stock (as well as defence) data are obtainable. With non‐defence output as the dependent variable and using only high quality data, no evidence in favour of the underconsumptionist (as opposed to the defence as a burden) position is found.

Item Details

Item Type:Refereed Article
Research Division:Economics
Research Group:Applied economics
Research Field:Macroeconomics (incl. monetary and fiscal theory)
Objective Division:Economic Framework
Objective Group:Macroeconomics
Objective Field:Macroeconomics not elsewhere classified
UTAS Author:Alexander, WRJ ( Alexander)
ID Code:3409
Year Published:1995
Web of Science® Times Cited:9
Deposited By:Economics and Finance
Deposited On:1995-08-01
Last Modified:2011-09-30

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