- Consulting Editors
- The Oxford Handbook of The Economics of Peace and Conflict
- Economic Perspectives on Peaceand Conflict
- Informational Aspects of Conflict
- Commitment Problems and Shifting Poweras a Cause of Conflict
- Bargaining and Conflict with Incomplete Information
- The Hobbesian Trap
- Religion, Conflict, and Cooperation
- Comparing Polarization Measures
- Inequality, Polarization, and Conflict
- On the Causes of Civil War
- Reflections on Africa’s Wars
- Methods For Measuring Aggregate Costs Of Conflict
- How Many Bucks in a Bang: On the Estimation of the Economic Costs of Conflict
- Estimating the Costs of War: Methodological Issues, with Applications to Iraq and Afghanistan
- Estimating the Human Costs of War: The Sample Survey Approach
- Mental Health In The Aftermath Of Conflict
- Measuring the Economic Costs of Terrorism
- Assessing the Effects of Military Expenditures on Growth
- The Economic Welfare Cost of Conflict: An Empirical Assessment
- Technologies of Conflict
- Endogenous Formation of Alliances in Conflicts
- Conflicts with Multiple Battlefields
- Laboratory Experiments on Conflict
- War, Trade, and Natural Resources: A Historical Perspective
- Trade in the Shadow of Power
- Conflict and Policy in General Equilibrium: Insights from a Standard Trade Model
- The Use of Coercion in Society: Insecure Property Rights, Conflict, and Economic Backwardness
- War and Poverty
- Aggressive Elites and Vulnerable Entrepreneurs: Trust and Cooperation in the Shadow of Conflict
- Globalization and International Conflict: Can Foreign Direct Investment Increase Cooperation Among Nations?
- National Borders, Conflict and Peace
- Political Institutions and War Initiation: The Democratic Peace Hypothesis Revisited
- Why Follow the Leader? Collective Action, Credible Commitment, and Conflict
- Conflict-Inhibiting Norms
Abstract and Keywords
The earlier literature regarding the effects of military expenditures on economic growth had initially shown a positive relationship between the two variables. This article examines this topic, taking account of more recent models of growth. The second section considers the alternative general economic theories that inform the development of models to undertake empirical analyses. The third section considers estimation issues. The fourth section considers the alternative formal models that are common in the literature: the Feder–Ram model, the modified Solow model, and the endogenous growth models. The fifth section presents some empirical results to illustrate the issues involved in estimating the models and to compare their performance. The estimation of more sophisticated models indicates, contrary to the early studies, that the effect of military expenditures on growth is negative.
Giorgio d'Agostino is an assistant professor at the University of Rome III (Italy).
J. Paul Dunne is a professor of economics at the University of Cape Town.
Luca Pieroni is an associate professor of economics at the University of Perugia.
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