Dépenses militaires, croissance et bien être: une simulation de l’impact macroéconomique de la R&D défense

Thierry Laurent ()

Revue d'économie politique, 2012, vol. 122, issue 6, 971-1009

Abstract: This paper aims at providing a simple economic framework to address a somewhat neglected question of economic policy, namely the optimal share of investments in military R&D in total public spending. In order to capture the long-run impact of tax-financed military R&D on the growth rate, we develop an endogenous growth model in the spirit of Barro [1990]. The model focuses on the optimal sharing of public resources between consumption, civil investment, military R&D and other military expenditures. Taking into account two types of R&D ? tax-financed military R&D vs private (non-military) R&D ? allows us to analyze how the government manages the optimal allocation of tax resources between public funding of military R&D on the one side, and the provision of subsidies to private R&D on the other side. The results emphasize the key role played by military R&D in enhancing economic growth and welfare in the long run.

Keywords: Military R&D; public spending; endogenous growth (search for similar items in EconPapers)
Date: 2012
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