Military Spending and Economic Growth: A Post-Keynesian Model
-
Published:2023-10-18
Issue:2
Volume:18
Page:
-
ISSN:1749-852X
-
Container-title:The Economics of Peace and Security Journal
-
language:
-
Short-container-title:EPSJ
Author:
Elveren Adem Yavuz,Töngür Ünal,Myers Tristian
Abstract
One important criticism of models of military spending and growth is that they focus on the direct impact, ignoring critical indirect impacts through, for example, income distribution. This article introduces a post-Keynesian model incorporating military spending that allows workers and capitalists to have different marginal propensities to consume. The model suggests first that civilian spending is more likely to increase the productive capacity of the economy due to higher human capital and, second, that military spending and civilian spending will have different effects on the profit share and the wage share.
Publisher
Economists for Peace and Security
Subject
Management of Technology and Innovation,Political Science and International Relations,Economics, Econometrics and Finance (miscellaneous)