The effect of military service system change on the demand for military expenditure

Sheng Tung Chen (), Jyun-Wei Lai and Arwin Pang

Defence and Peace Economics, 2015, vol. 26, issue 6, 623-633

Abstract: There has been a distinct trend of military service system change from conscription to enlistment around the world. This study aims to investigate how this change affects the demand for military expenditure. Our model is based on neoclassical model. Empirically, a two-break unit root test is applied to test the endogeneity of structural changes along with the system change. Then, an autoregressive distributed lag model is used to examine the effects on military expenditure. The empirical results show that the demand for military expenditure partly coincides with the system change. The effect of GDP on military expenditure is larger in countries with conscription than in those with enlistment.

Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/10242694.2014.901643 (text/html)
Access to full text is restricted to subscribers.

Related works:
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:taf:defpea:v:26:y:2015:i:6:p:623-633

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/GDPE20

DOI: 10.1080/10242694.2014.901643

Access Statistics for this article

Defence and Peace Economics is currently edited by Professor Keith Hartley

More articles in Defence and Peace Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().