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Institutional Determinants of Military Spending

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  • Germà Bel

    ()
    (Faculty of Economics, University of Barcelona)

  • Ferran Elias-Moreno

    (Department of Economics, Columbia University)

Abstract

Drawing on a database for 1988-2006 containing information on 157 countries, we investigate the effects on military spending of government form, electoral rules, concentration of parliamentary parties, and ideology. From an OLS regression on pooled data, our results show that presidential democracies spend more than parliamentary systems on defense, whereas the presence of a plurality voting system will reduce the defense burden. Our findings suggest that, in contrast to theoretical predictions in the literature, institutions do not have the same impact on the provision of all public goods. We present as well evidence regarding the effect of ideology on defense spending.

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File URL: http://www.ub.edu/irea/working_papers/2009/200922.pdf
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Bibliographic Info

Paper provided by University of Barcelona, Research Institute of Applied Economics in its series IREA Working Papers with number 200922.

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Length: 32 pages
Date of creation: Oct 2009
Date of revision: Oct 2009
Handle: RePEc:ira:wpaper:200922

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Postal: Tinent Coronel Valenzuela, Num 1-11 08034 Barcelona
Web page: http://www.ub.edu/irea/
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Keywords: Military Spending; Politics; Institutions;

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Cited by:
  1. Kimbambu Tsasa Vangu, Jean - Paul, 2012. "Analyse de la Relation Guerres Civiles et Croissance Économique
    [Civil Wars and Economic Growth in DRC]
    ," MPRA Paper 42424, University Library of Munich, Germany, revised 05 Feb 2012.
  2. Potrafke, Niklas, 2010. "The growth of public health expenditures in OECD countries: do government ideology and electoral motives matter?," MPRA Paper 24083, University Library of Munich, Germany.
  3. Christian Bj�rnskov & Niklas Potrafke, 2012. "Political Ideology and Economic Freedom Across Canadian Provinces," Eastern Economic Journal, Palgrave Macmillan, vol. 38(2), pages 143-166.
  4. Vincenzo Bove & Georgios Efthyvoulou & Antonio Navas, 2013. "Political Cycles in Public Expenditure: Butter vs Guns," Working Papers 2013016, The University of Sheffield, Department of Economics.
  5. Bortolotti, Bernardo & Cambini, Carlo & Rondi, Laura, 2012. "Reluctant Regulation," MPRA Paper 48073, University Library of Munich, Germany.
  6. Potrafke, Niklas, 2009. "Political cycles and economic performance in OECD countries: empirical evidence from 1951-2006," MPRA Paper 23751, University Library of Munich, Germany.
  7. Vincenzo Bove & Roberto Nisticò, 2014. "Coups d'état and Defense Spending: A Counterfactual Analysis," CSEF Working Papers 366, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
  8. Niklas Potrafke, 2010. "Ideology and cultural policy," TWI Research Paper Series 49, Thurgauer Wirtschaftsinstitut, Universität Konstanz.

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