How does war shock the economy?
نویسنده
چکیده
Wartime periods have frequently been treated as natural macroeconomic experiments, but the international pooled time series evidence presented here shows that the literature has overemphasized the experience of the United States and the United Kingdom. Wars fought exclusively on foreign soil do have marginally higher real output growth than peacetime periods, but real growth during all other wars is sharply below peacetime levels. Evidence for foreign and domestic wars is consistent with monetarist, fiscalist, and mixed theories of wartime booms. 2002 Elsevier Science Ltd. All rights reserved.
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