Journal article
A Critique of the Multi-Sector Model of the Effects of Military Spending on Economic Growth
Applied Econometrics and International Development, Vol.4(2), pp.35-54
2004
Abstract
The multi-sector model of economic growth is the most widely used framework for empirically investigating the effects of military spending on growth. It has also been applied to 'nonmilitary' sectors of the economy, such as exporters and the government. This paper presents a survey of criticisms in the context of models with a military sector (but also applicable to nonmilitary models). These include: the possibility of spurious correlations, misspecification biases, observational equivalence and invalid statistical inferences concerning a key parameter of the model. It is concluded, therefore, that overcoming these shortcomings or finding a more robust, alternative approach would be worthwhile.
Details
- Title
- A Critique of the Multi-Sector Model of the Effects of Military Spending on Economic Growth
- Authors
- William R J Alexander (Author) - University of Otago, New ZealandPaul Hansen (Author) - University of Otago, New Zealand
- Publication details
- Applied Econometrics and International Development, Vol.4(2), pp.35-54
- Publisher
- Asociacion Euro-Americana de Estudios del Desarrollo Economico
- Date published
- 2004
- ISSN
- 1578-4487
- Organisation Unit
- School of Business and Creative Industries; Indigenous and Transcultural Research Centre; University of the Sunshine Coast, Queensland; USC Business School - Legacy
- Language
- English
- Record Identifier
- 99449025402621
- Output Type
- Journal article
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