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Military spending : A perspective on the restructuring dynamics of the defense sector

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  • Eleonora Gentilucci

    ()
    (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris 1 - Panthéon-Sorbonne)

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    Abstract

    This article is articulated in two sections. In the first-one we try to explain the dynamics of military spending and others social expenditures in the period 1988-2010 for the United States. According to empirical data we support the argument that there is a remarkable trade-off in the allocation of public spending, because, often, the increase in military expenditures was to detriment of those for the education, social security and health. In the second section we analyze the transition from the old "military industrial complex" to the new "military-security system" in the light of defense industry restructing. We focus in particular on the role of financialization and industrial concentration of the firms.

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    Bibliographic Info

    Paper provided by HAL in its series Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) with number halshs-00747877.

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    Date of creation: Oct 2012
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    Handle: RePEc:hal:cesptp:halshs-00747877

    Note: View the original document on HAL open archive server: http://halshs.archives-ouvertes.fr/halshs-00747877
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    Related research

    Keywords: Military-industrial complex; industry concentration; defense sector; military expenditures; public spending; trade-off effect; financialization; industry restructuring; military-security system.;

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    1. David Gold, 1997. "Evaluating the trade-off between military spending and investment in the United States," Defence and Peace Economics, Taylor & Francis Journals, vol. 8(3), pages 251-266.
    2. Malcolm D. Knight & Delano Villanueva & Norman Loayza, 1995. "The Peace Dividend - Military Spending Cuts and Economic Growth," IMF Working Papers 95/53, International Monetary Fund.
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