EconPapers    
Economics at your fingertips  
 

The Dynamic Cost of the Draft

Morten Lau, Panu Poutvaara () and Andreas Wagener

No 774, CESifo Working Paper Series from CESifo

Abstract: We propose a dynamic general equilibrium model with human capital accumulation to evaluate the economic consequences of compulsory services (such as military draft or social services). Our analysis identifies a so far ignored dynamic cost arising from distortions in time allocation over the life-cycle. We provide conservative estimates for the excess burden that arises when the government relies on forced labor rather than on income taxation to finance public expenditures. Our results suggest that eliminating the draft could produce considerable dynamic gains, both in terms of GDP and lifetime utility.

Keywords: conscription; draft; time allocation; distortionary taxation; computable general equilibrium models. (search for similar items in EconPapers)
JEL-codes: C68 H20 H57 J22 (search for similar items in EconPapers)
Date: 2002
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
https://www.cesifo.org/DocDL/cesifo_wp774.pdf (application/pdf)

Related works:
Journal Article: Dynamic Costs of the Draft (2004) Downloads
Journal Article: Dynamic Costs of the Draft (2004) Downloads
Working Paper: Dynamic costs of the draft (2004)
Working Paper: The Dynamic Cost of Draft (2002) 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:ces:ceswps:_774

Access Statistics for this paper

More papers in CESifo Working Paper Series from CESifo Contact information at EDIRC.
Bibliographic data for series maintained by Klaus Wohlrabe ().

 
Page updated 2021-07-13
Handle: RePEc:ces:ceswps:_774