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Military Spending and Inequality in Autocracies: A Simple Model

Author

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  • Schwuchow Soeren C.

    (Brandenburg University of Technology. Chair of Microeconomics. P.O. Box 10 13 44, 03013Cottbus, Germany, Phone +49-355-692983)

Abstract

In this note, we outline a general framework for analyzing how inequality and military spending interact in a society governed by a rent-seeking autocrat. Relying on a general equilibrium model, we show that, generally, the autocrat utilizes the military for redistribution in favor of poorer citizens. However, the dictator’s own rent-seeking activity weakens the extent of redistribution and, in the extreme, can even reverse its direction, yielding more unequal secondary distributions instead. Accordingly, the initial level of inequality also affects the impact of military spending on inequality as the former has an impact on the extent of both, the regime’s rent-seeking activity as well as redistribution. Here, our model shows that primary and secondary distributions are rather equal for extreme initial equality/inequality. For medium levels of initial inequality, redistribution is rather large and can be in favor of the poor or of the rich, depending on the extent of rent-seeking and the primary distribution. Based on these results, we highlight the importance of a society’s institutional framework for analyzing the relation of inequality and military spending.

Suggested Citation

  • Schwuchow Soeren C., 2018. "Military Spending and Inequality in Autocracies: A Simple Model," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 24(4), pages 1-5, December.
  • Handle: RePEc:bpj:pepspp:v:24:y:2018:i:4:p:5:n:1
    DOI: 10.1515/peps-2018-0025
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    Cited by:

    1. Sudeshna Ghosh, 2022. "Analysing the nexus between income inequality and military expenditure in top ten defence expenditure economies," Quality & Quantity: International Journal of Methodology, Springer, vol. 56(2), pages 689-712, April.
    2. Antonella Biscione & Raul Caruso, 2021. "Military Expenditures and Income Inequality Evidence from a Panel of Transition Countries (1990-2015)," Defence and Peace Economics, Taylor & Francis Journals, vol. 32(1), pages 46-67, January.

    More about this item

    Keywords

    Inequality; autocracies; rent-seeking; military spending;
    All these keywords.

    JEL classification:

    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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