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The Impact of US Military Spending on Public Debt in Europe (1992–2013): A Note

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  • Caruso Raul

    (Catholic University of the Sacred Heart, Institute of Economic Policy, via necchi 5 Milan 20123, Italy)

  • Di Domizio Marco

    (University of Teramo, Faculty of Political Sciences, University Campus of Coste Sant’agostino, via R. Balzarini 1 64100 Teramo, Italy)

Abstract

This paper investigates the relationship between the US military spending and public debt in a panel of European countries in the period 1992–2013. Under the established evidence of the interdependence between US and European military spending, we exploited a dynamic panel estimation. Findings show that the debt of European countries is: (1) positively associated with US military spending; (2) negatively associated with average military burden of other European countries.

Suggested Citation

  • Caruso Raul & Di Domizio Marco, 2015. "The Impact of US Military Spending on Public Debt in Europe (1992–2013): A Note," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 21(4), pages 459-466, December.
    • Handle: RePEc:bpj:pepspp:v:21:y:2015:i:4:p:459-466:n:14
    DOI: 10.1515/peps-2015-0040
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    References listed on IDEAS

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    Cited by:

    1. Raul Caruso, 2015. "Beyond deterrence and decline. Towards a general understanding of peace economics," Rivista Internazionale di Scienze Sociali, Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore, vol. 123(1), pages 57-74.
    2. Ortiz, Cristian & Alvarado, Rafael & Salinas, Aldo, 2019. "The effect of military spending on output: New evidence at the global and country group levels using panel data cointegration techniques," Economic Analysis and Policy, Elsevier, vol. 62(C), pages 402-414.

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