Defense Expenditures, Economic Growth, and the “Peace Dividend”

Chí Huang

220 citations0/0 files storedAmerican Political Science Review

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Defense, Military, and Policy Studies Economic Growth and Productivity Fiscal Policy and Economic Growth

Abstract

Recent developments in Eastern Europe have created expectations of a “peace dividend” associated with reduced levels of U.S. defense expenditures. We present and empirically estimate a two-equation model for assessing the direct and indirect, immediate and delayed effects of changes in defense spending on economic growth in the United States.

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References

1969A General Equilibrium Approach To Monetary Theory 1917Business Acceleration and the Law of Demand: A Technical Factor in Economic Cycles 1952Overcapacity and the Acceleration Principle 1979Investment in the 1970s: Theory, Performance, and Prediction 1980Military expenditure and investment in OECD countries, 1954–1973 1977Military expenditure and capitalism

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1995Defense Expenditures, Economic Growth, and The “Peace Dividend”1992Sizing up the Peace Dividend: Economic Growth and Military Spending in the United States, 1948–1996 1991Guns versus Butter: The Indirect Link 2008US military expenditures to protect the use of Persian Gulf oil for motor vehicles 1995Chapter 10 Defense expenditure and economic growth 2009The Relationship between Defense Spending and Economic Growth in the United States 2004A non‐linear defence‐growth nexus? evidence from the US economy 2000Military spending and economic growth in South Africa

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