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Military Draft And Economic Growth In Oecd Countries

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  • Katarina Keller
  • Panu Poutvaara
  • Andreas Wagener

Abstract

Economic theory predicts that military conscription is associated with static inefficiencies as well as with dynamic distortions of the accumulation of human and physical capital. Relative to an economy with an all-volunteer force, output levels and growth rates should be lower in countries that rely on a military draft to recruit their army personnel. For OECD countries, we show that military conscription indeed has a statistically significantly negative impact on economic performance.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Defence and Peace Economics.

Volume (Year): 20 (2009)
Issue (Month): 5 ()
Pages: 373-393

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Handle: RePEc:taf:defpea:v:20:y:2009:i:5:p:373-393

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Related research

Keywords: Growth; Military draft; Augmented Solow model;

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References

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  1. Nonneman, Walter & Vanhoudt, Patrick, 1996. "A Further Augmentation of the Solow Model and the Empirics of Economic Growth for OECD Countries," The Quarterly Journal of Economics, MIT Press, vol. 111(3), pages 943-53, August.
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  14. Morten I. Lau & Panu Poutvaara & Andreas Wagener, 2004. "Dynamic Costs of the Draft," German Economic Review, Verein für Socialpolitik, vol. 5(4), pages 381-406, November.
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Citations

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Cited by:
  1. Tim Perri, 2013. "Can a draft induce more human capital investment in the military?," Economics Bulletin, AccessEcon, vol. 33(2), pages 905-913.
  2. Bauer, Thomas K. & Bender, Stefan & Paloyo, Alfredo R. & Schmidt, Christoph M., 2009. "Evaluating the labour-market effects of compulsory military service," IAB Discussion Paper 200923, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  3. Thomas K. Bauer & Stefan Bender & Alfredo R. Paloyo & Christoph M. Schmidt, 2009. "Evaluating the Labor-Market Effects of Compulsory Military Service - A Regression-Discontinuity Approach," Ruhr Economic Papers 0141, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
  4. Muhammad Shahbaz & Talat Afza & Muhammad Shahbaz Shabbir, 2013. "Does Defence Spending Impede Economic Growth? Cointegration And Causality Analysis For Pakistan," Defence and Peace Economics, Taylor & Francis Journals, vol. 24(2), pages 105-120, April.
  5. Poutvaara, Panu & Wagener, Andreas, 2009. "The Political Economy of Conscription," IZA Discussion Papers 4429, Institute for the Study of Labor (IZA).
  6. Shahbaz Muhammad & Carlos Leitao Nuno & Salah Uddin Ghazi & Mohamed Arouri & Frederic Teulon, 2014. "Should Portuguese Economy Invest in Defense Spending? A Revisit," Working Papers 2014-380, Department of Research, Ipag Business School.
  7. Perri Tim, 2010. "Deferments and the Relative Cost of Conscription," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(1), pages 1-29, November.
  8. Panu Poutvaara & Andreas Wagener, 2011. "Ending Military Conscription," CESifo DICE Report, Ifo Institute for Economic Research at the University of Munich, vol. 9(2), pages 36-43, 07.
  9. Hsien-Hung Kung & Jennifer C. H. Min, 2013. "Military Spending and Economic Growth Nexus in Sixteen Latin and South American Countries: A Bootstrap Panel Causality Test," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(4), pages 171-185, December.

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