Military versus non-military government spending and the shadow economy

Rajeev Goel and James Saunoris

Economic Systems, 2014, vol. 38, issue 3, 350-359

Abstract: Using recent cross-national data, this research examines the determinants of the shadow economy, focusing on the relative effects of military and non-military government spending. Results show that, other things being the same, nations with larger military spending have smaller shadow economies, while the effect of non-military government spending is statistically insignificant. These findings stand up to various robustness checks.

Keywords: Military spending; Non-military spending; Shadow economy; Government; Regulation (search for similar items in EconPapers)
JEL-codes: K42 O50 P48 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecosys:v:38:y:2014:i:3:p:350-359

DOI: 10.1016/j.ecosys.2013.12.004

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