The comparison of the impact of military and non-military government spending on GDP and consumption in Poland

Purpose – The purpose of the article is to compare macroeconomic effects military and non-military government spending on Polish economy, which particularly relevant in context rapid rise after outbreak war Ukraine. Research method research based a new-Keynesian dynamic stochastic general equilibrium model estimated for economy. developed study takes into account differences between 3 types spending, current investment. Results On one hand, empirical results show that short medium term, increasing more effective stimulating GDP than rising spending. other impulse response functions indicate better tool enhancing consumption. Originality / value implications recommendations This first exploring CEE country, accounting heterogeneity Assessing these at time unprecedented growth Poland an important added study. main implication recommend boost GDP, while stimulate