Military expenditure and investment in OECD countries, 1954–1973

Smith, Ron P. (1980) Military expenditure and investment in OECD countries, 1954–1973. Journal of Comparative Economics 4 (1), pp. 19-32. ISSN 0147-5967.

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Official URL: https://doi.org/10.1016/0147-5967(80)90050-5

Abstract

This paper, using data for 14 large OECD countries between 1954 and 1973, tests the hypothesis that reduced investment has been a major opportunity cost of military expenditure in the postwar period. The share of investment in potential output is made a function of the share of military expenditure, growth rate, and demand pressure. Whether the data are treated as a set of cross sections, time series, or pooled, and under various assumptions about dynamic and error covariance structure, the results indicate a clear negative effect of military expenditure on investment, with a coefficient on military expenditure not significantly different from −1.

Metadata

Item Type:	Article
School:	Birkbeck Faculties and Schools > Faculty of Business and Law > Birkbeck Business School
Depositing User:	Sarah Hall
Date Deposited:	20 Oct 2020 17:54
Last Modified:	02 Aug 2023 18:04
URI:	https://eprints.bbk.ac.uk/id/eprint/41047

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