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    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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    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.


    Item Type: Article
    School: School of Business, Economics & Informatics > Economics, Mathematics and Statistics
    Depositing User: Sarah Hall
    Date Deposited: 20 Oct 2020 17:54
    Last Modified: 01 Dec 2021 16:33


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