The causation relationship between economic growth and military expenditures in developing countries has received growing focus in recent years. One of the arguments in this field is that military spending absorbs a significant proportion of the limited financial resources in LDCs. The present study examines the causal relation in two models: defense spending with total real economic growth and...

We develop a method for measuring the amount of insurance the portfolio of government liabilities provides against fiscal shocks, and apply it to postwar US data. We define fiscal shocks as surprises in defense spending. Our results indicate that the US federal government is partially hedged against wars and other surprise increases in defense expenditures. Seven percent of the total cost of de...

One painful lesson from the Great Recession is that there remain limits to what is achievable with conventional monetary policy. The severity of the downturn, despite near zero interest rates, has renewed interest in fiscal stimulus among academics and policy makers alike. Holding the general question of fiscal multipliers aside, the ongoing political debate regarding past and future stimulus r...

This paper is set out to find the relationship, if any, between Defense spending, Economic development spending and environment for India, discuss policy implications of empirical results. Since India has one largest defense budgets within Asian countries as well Quadrilateral Security Dialogue (Quad). The Quad a strategic forum informal nature. It comprises four nations, namely – Australia, US...

This paper develops an infinite horizon model of public spending and taxation in which policy decisions are determined by legislative bargaining. The policy space incorporates both productive and distributive public spending and distortionary taxation. The productive spending is investing in a public good that benefits all citizens (e.g., national defense or air quality) and the distributive sp...

Do women’s political gains in office translate into substantive differences in foreign policy outcomes? Previous research shows that men and women hold different national security policy preferences and that greater representation by women in the legislature reduces conflict behavior. But are these relationships an artifact of confounding variables? To answer this question, we analyze the defen...