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To Draft or Not to Draft? Efficiency, Generational Incidence, and Political Economy of Military Conscription

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Author Info
Panu Poutvaara () (CEBR, Copenhagen Business School, CESifo and IZA Bonn)
Andreas Wagener (University of Vienna, CESifo and CEBR)

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Abstract

We study the efficiency and distributional consequences of establishing and abolishing the draft in a dynamic model with overlapping generations, taking into account endogenous human capital formation as well as government budget constraints. The introduction of the draft initially benefits the older generation while harming the young and all future generations. Its Pareto-improving abolition requires levying age-dependent taxes on the young. These being infeasible, abolition of the draft would harm the old. The intergenerational incidence of the gains and losses from its introduction and abolition helps to explain the political allure of the draft.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1559.

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Length: 25 pages
Date of creation: Apr 2005
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Handle: RePEc:iza:izadps:dp1559

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Related research
Keywords: draft conscription education intergenerational fairness

Other versions of this item:

Find related papers by JEL classification:
H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement
I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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  1. Fisher, Anthony C, 1969. "The Cost of the Draft and the Cost of Ending the Draft," American Economic Review, American Economic Association, vol. 59(3), pages 239-54, June.
  2. John T. Warner & Beth J. Asch, 2001. "The Record and Prospects of the All-Volunteer Military in the United States," Journal of Economic Perspectives, American Economic Association, vol. 15(2), pages 169-192, Spring. [Downloadable!] (restricted)
  3. Morten I. Lau & Panu Poutvaara & Andreas Wagener, 2004. "Dynamic Costs of the Draft," German Economic Review, Blackwell Publishing, vol. 5(4), pages 381-406, November. [Downloadable!] (restricted)
  4. Angrist, Joshua D, 1990. "Lifetime Earnings and the Vietnam Era Draft Lottery: Evidence from Social Security Administrative Records," American Economic Review, American Economic Association, vol. 80(3), pages 313-36, June.
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  5. Imbens, Guido & van der Klaauw, Wilbert, 1995. "Evaluating the Cost of Conscription in The Netherlands," Journal of Business & Economic Statistics, American Statistical Association, vol. 13(2), pages 207-15, April.
    Other versions:
  6. Casey B. Mulligan, 2005. "Conscription as Regulation," American Law and Economics Review, Oxford University Press, vol. 7(1), pages 85-111. [Downloadable!] (restricted)
    Other versions:
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