Military expenditure and economic development: An endogenous growth perspective

Berthélemy, Jean‐Claude; Herrera, Rémy; Sen, Somnath

doi:10.1007/bf01263638

Cited by 20 publications

(10 citation statements)

References 5 publications

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“…The dearth of studies that adopt a dynamic simulation modeling approach is rather surprising. Our sample of 93 studies includes only two studies that have adopted a calibration/simulation approach, namely Van Sinderen (1993) and Berthélemy et al (1995). There appear to be few studies that have adopted a computable general equilibrium (CGE) model approach.…”

Section: A Synthesis Of the Empirical Literaturementioning

confidence: 99%

A Synthesis of Empirical Research on the Impact of Government onLong‐Run Growth

Poot

2000

Growth and Change

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This paper provides a synthesis of the 1983-98 published literature on the empirical evidence regarding the interaction between government policies and growth. Five policy areas are considered: general government consumption, tax rates, education expenditures, defense and public infrastructure. The most conclusive results in the literature relate to the positive impact of education expenditures on growth. Public infrastructure also appears important. Regression analysis remains the most commonly adopted research methodology. A better link with current theories will be obtained when parameter calibration methods formicro-foundations based models replace parameter estimation of regression models with ad hoc specifications. Nonetheless, there remain severe limitations on what can be learned for policy from highly aggregative models of endogenous growth. Better data are needed at the regional macro and meso levels to complement thecurrently available pooled cross-section time-series country data. The potential endogeneity of government fiscal variables can be resolved through the selection of appropriate instrumental variables, such as those that arise in cases of "natural experiments". Copyright 2000 Gatton College of Business and Economics, University of Kentucky.

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Section: A Synthesis Of the Empirical Literaturementioning

confidence: 99%

A Synthesis of Empirical Research on the Impact of Government onLong‐Run Growth

Poot

2000

Growth and Change

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“…Russett (1970) showed that there is a substitution effect between military and social expenditures in the United States. Berthélemy et al (1995) showed a negative crowding-out effect between defence and education expenditures with a large negative effect on economic growth. 3 The debate on the economic consequences of military expenditures remains important in the post-Cold War period.…”

Section: Empirical Analysis Of the Negative Impacts Of Military Expenmentioning

confidence: 97%

Pacifism in Economic Analysis: A Historical Perspective

Coulomb¹,

Hartley²,

Intriligator³

2008

Defence and Peace Economics

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This article presents some pacifist ideas developed in various economists' works since the origins of economic thought. The Classicals considered international peace to be a normal result (as well as a necessary condition) of economic development and human progress. Such a conception is also shared by other schools of thought, such as Utopian socialism or institutionalism. Some economists were active in the development of the pacifist movement before the First World War, which led to the organization of several international Peace Congresses. During the Cold War, certain economic studies on military expenditure and the arms race contributed to the denunciation of an excessive militarism. However, the post-Cold War disarmament highlighted the costs of the necessary peace investment. There is a substantial research agenda and a need for more academic economists to undertake analytical and empirical work in this important field.Pacifism, Liberalism, Veblen, Militarism, Peace movements,

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“…(5) (Berthelemy, 1995). I E increases the skilled labor of the next period, while non-skilled labor increases with the natural growth rate of g N (Eqs.…”

Section: Supply-side Structurementioning

confidence: 98%

“…The details of military expenditure are described in Section 3.3. Berthelemy (1995) proposed that household utility is affected not only by individual consumption (C t /P t ) but also by non-military government expenditure (G t /P t ) and the security (Z t ) attained from military government expenditure. Government expenditures in both the non-military and military sectors cause an increase in the level of welfare and security, respectively.…”

Section: Supply-side Structurementioning

confidence: 99%