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The Keynesian IS-MR Model and Military Spending
Journal article   Peer reviewed

The Keynesian IS-MR Model and Military Spending

William R J Alexander
Defence and Peace Economics, Vol.26(2), pp.213-221
2015
url
https://doi.org/10.1080/10242694.2013.857449View
Published Version

Abstract

keynesian model military spending multipliers output
The issue of guns or butter is one of the most fundamental economic questions, yet there is no consensus on a theoretical framework for examining it. Over the last decade, a version of a simple Keynesian macroeconomic model has been applied a number of times to examining the link between defence spending and economic growth in a range of countries. There are reasons for doubting the soundness of this model as a basis for empirical work.

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