EconPapers    
Economics at your fingertips  
 

Can we declare military Keynesianism dead?

Luca Pieroni (), Giorgio d'Agostino () and Marco Lorusso ()

Journal of Policy Modeling, 2008, vol. 30, issue 5, 675-691

Abstract: This paper empirically tests the Keynesian hypothesis that government defence spending positively impacts on aggregate output, by using a long-run equilibrium model for the US and the UK. Our contribution, with respect to previous works, is twofold. First, our inferences are adjusted for structural breaks exhibited by the data concerning fiscal and monetary variables. Second, we take into account different dynamics between defence spending on aggregate output, showing that the results are sensitive to sub-sample choices. Though the estimated elasticities in both countries show a lack of significance in the more recent years of the sample, defence-spending priorities addressed to international security may revitalize pro-cyclical effects in the UK, by an industrial policy of defence shared with the EU members.

Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0161-8938(08)00024-0
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Can we declare military Keynesianism dead? (2008) Downloads
Working Paper: Can We Declare Military Keynesianism Dead? (2008) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jpolmo:v:30:y:2008:i:5:p:675-691

Access Statistics for this article

Journal of Policy Modeling is currently edited by A. M. Costa

More articles in Journal of Policy Modeling from Elsevier
Bibliographic data for series maintained by Haili He ().

 
Page updated 2020-11-21
Handle: RePEc:eee:jpolmo:v:30:y:2008:i:5:p:675-691