Hostname: page-component-cd9895bd7-7cvxr Total loading time: 0 Render date: 2024-12-28T18:09:01.711Z Has data issue: false hasContentIssue false
  • English
  • Français

Sizing up the Peace Dividend: Economic Growth and Military Spending in the United States, 1948–1996

Published online by Cambridge University Press:  02 September 2013

Michael D. Ward  and
David R. Davis
Michael D. Ward
Affiliation:
University of Colorado
David R. Davis
Affiliation:
Emory University
Get access Rights & Permissions [Opens in a new window]

Abstract

We examine the relationship between military expenditures and economic growth in the United States from 1948 to 1990, in order to gauge the potential peace dividend. Our main results suggest that military spending is a significant drain on the economy. We then examine the implications of a restructured international system for U.S. military expenditures and their resultant impact on economic growth in the 1990s. Simulations of Democratic and Republican proposals for cuts in defense spending suggest increases in economic output of between 2.5% and 4.5% over the period 1993–96.

Type
Research Notes
Information
American Political Science Review , Volume 86 , Issue 3 , September 1992 , pp. 748 - 755
Copyright
Copyright © American Political Science Association 1992

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Atesoglu, H. Somnez, and Mueller, Michael J.. 1990. “Defence Spending and Economic Growth.” Defense Economics, 2:19–27.CrossRefGoogle Scholar
Biswas, Basudeb, and Ram, Rati. 1986. “Military Expenditures and Economic Growth in Less Developed Countries: An Augmented Model and Further Evidence.” Economic Development and Cultural Change, 34:361–72.CrossRefGoogle Scholar
Bush, George. 1992. Economic Report of the President. Transmitted to Congress, February. Washington: GPO.Google Scholar
Congressional Budget Office. 1992. The Economic Effects of Reduced Defense Spending. Washington: GPO.Google Scholar
Comes, Richard, and Sandier, Todd. 1986. The Theory of Externalities, Public Goods, and Club Goods. Cambridge: Cambridge University Press.Google Scholar
Feder, Gershon 1982. “On Exports and Economic Growth.” Journal of Development Economics 12:59–73.CrossRefGoogle Scholar
Fontanel, Jacques, and Smith, Ron. 1991. “A European Defense Union?” Economic Policy 13:394–424.Google Scholar
Goldstein, Joshua S. 1988. Long Cycles: Prosperity and War in the Modern Age. New Haven: Yale University Press.Google Scholar
Hewitt, Daniel P. 1991a. “Military Expenditure: Econometric Testing of Economic and Political Influences.” Working Paper WP/91/53. Washington: International Monetary Fund.Google Scholar
Hewitt, Daniel P. 1991b. “Military Expenditure: International Comparison of Trends.” Working Paper WP/91/54. Washington: International Monetary Fund.Google Scholar
Huang, Chi, and Mintz, Alex. 1990. “Ridge Regression Analysis of the Defense–Growth Trade-off in the United States.” Defense Economics 2:29–37.CrossRefGoogle Scholar
Huang, Chi, and Mintz, Alex. 1991. “Defence Expenditures and Economic Growth: The Externality Effect.” Defense Economics 3:35–40.CrossRefGoogle Scholar
Kaufmann, William T., and Steinbruner, John D.. 1991. Decisions for Defense: Prospects for a New Order. Washington: Brookings Institution.Google Scholar
Kennedy, Peter. 1986. A Guide to Econometrics. 2d ed. Cambridge: Massachusetts Institute of Technology Press.Google Scholar
Kennedy, Paul. 1987. The Rise and Fall of the Great Powers. New York: Random House.Google Scholar
Mintz, Alex, and Huang, Chi. 1990. “Defense Expenditures, Economic Growth, and the ‘Peace Dividend’.” American Political Science Review 84:1283–93.CrossRefGoogle Scholar
Mintz, Alex, and Huang, Chi. 1991. “‘Guns’ Versus ‘Butter’”: The Indirect Link.” American Journal of Political Science. 35:738–57.CrossRefGoogle Scholar
Ram, Rati. 1986. “Government Size and Economic Growth: A New Framework and Some Evidence from Cross-Section and Time Series Data.” American Economic Review 76:191–203.Google Scholar
Russett, Bruce M. 1969. “Who Pays for Defense?” American Political Science Review 63:412–26.CrossRefGoogle Scholar
Russett, Bruce M. 1970. What Price Vigilance? New Haven: Yale University Press.Google Scholar
Russett, Bruce M. 1982. “Defense Expenditures and National Well-Being.” American Political Science Review 79:767–77.CrossRefGoogle Scholar
Samuelson, Paul A. 1964. Economics: An Introductory Analysis. New York: McGraw-Hill.Google Scholar
Steinbruner, John D. 1992. Statement to the Senate Appropriations Committee, 19 February.Google Scholar
Ward, Michael D., Davis, David, Penubarti, Mohan, Rajmaira, Sheen, and Cochran, Mali. 1991. “Military Spending in India.” Defence Economics 3:41–63.CrossRefGoogle Scholar
United States Department of Labor. 1989. Handbook of Labor Statistics. Washington: GPO.Google Scholar
United States Department of Labor. 1991. Handbook of Labor Statistics. Washington: GPO.Google Scholar
Submit a response

Comments

No Comments have been published for this article.