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Dynamic costs of the draft

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Author Info

  • Lau, Morten I.
  • Poutvaara, Panu
  • Wagener, Andreas

Abstract

We propose a dynamic general-equilibrium model with human capital accumulation to evaluate the economic consequences of compulsory services (such as military draft or social work). Our analysis identifies a so far ignored dynamic cost arising from distortions in time allocation over the life cycle. We provide conservative estimates for the excess burden that arises when the government relies on forced labor rather than on income taxation to finance public expenditures. Our results suggest that eliminating the draft could produce considerable dynamic gains, both in terms of GDP and lifetime utility.

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Bibliographic Info

Paper provided by University of Munich, Department of Economics in its series Munich Reprints in Economics with number 19265.

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Date of creation: 2004
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Publication status: Published in German Economic Review 4 5(2004): pp. 381-406
Handle: RePEc:lmu:muenar:19265

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References

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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  1. 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.
  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.
  3. repec:iza:izadps:dp509 is not listed on IDEAS
  4. Sandler,Todd & Hartley,Keith, 1995. "The Economics of Defense," Cambridge Books, Cambridge University Press, number 9780521447287, October.
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Citations

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Cited by:
  1. Keller, Katarina & Poutvaara, Panu & Wagener, Andreas, 2009. "Does Military Draft Discourage Enrollment in Higher Education? Evidence from OECD Countries," IZA Discussion Papers 4399, Institute for the Study of Labor (IZA).
  2. Poutvaara, Panu & Wagener, Andreas, 2007. "To draft or not to draft? Inefficiency, generational incidence, and political economy of military conscription," European Journal of Political Economy, Elsevier, vol. 23(4), pages 975-987, December.
  3. Katarina Keller & Panu Poutvaara & Andreas Wagener, 2009. "Military Draft And Economic Growth In Oecd Countries," Defence and Peace Economics, Taylor & Francis Journals, vol. 20(5), pages 373-393.
  4. 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.
  5. Ross Fetterly, 2006. "The Demand And Supply Of Peacekeeping Troops," Defence and Peace Economics, Taylor & Francis Journals, vol. 17(5), pages 457-471.
  6. Bauer, Thomas K. & Bender, Stefan & Paloyo, Alfredo R. & Schmidt, Christoph M., 2009. "Evaluating the Labor-Market Effects of Compulsory Military Service," IZA Discussion Papers 4535, Institute for the Study of Labor (IZA).
  7. Harald Trabold & Thorsten Schneider & Philipp Vogel, 2006. "Wehrpflicht- statt Berufsarmee: Eine Alternative wider die ökonomische Vernunft," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 7(1), pages 127-142, 02.
  8. Di Pietro, Giorgio, 2009. "Military Conscription and University Enrolment: Evidence from Italy," IZA Discussion Papers 4212, Institute for the Study of Labor (IZA).
  9. Panu Poutvaara & Andreas Wagener, 2009. "The Political Economy of Conscription," CESifo Working Paper Series 2821, CESifo Group Munich.
  10. 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.
  11. 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.

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