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Military competition and size and composition of economy and government

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  • Teng, Jimmy

Abstract

This paper uses a formal model to analyze the effects of military competition between states on the size and composition of the economy and the government. Great economies of scale in warfare and even distributions of military capability among the contestants generate intense interstate rivalry, strong concern for relative economic and military capability. Consequently, there is a larger economy and government and an increasing share of the military in the economy. However, if there are diseconomies of scale in the provision of public intermediate inputs, intense military competition between states actually increases the relative size of the civilian public sector relative to that of the military. The paper then studies how waves of military technological revolutions affected military competition between states and the size and composition of economy and government in history.

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File URL: http://mpra.ub.uni-muenchen.de/37968/
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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 37968.

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Date of creation: 05 Jan 2012
Date of revision: 05 Apr 2012
Handle: RePEc:pra:mprapa:37968

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Keywords: Growth of Government; Public Intermediate Inputs; Civilianization; Economic Performance; Military Technological Revolutions;

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  1. Alesina, Alberto & Spolaore, Enrico, 2005. "War, peace, and the size of countries," Journal of Public Economics, Elsevier, vol. 89(7), pages 1333-1354, July.
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  7. Albert Breton, 1989. "The Growth of Competitive Governments," Canadian Journal of Economics, Canadian Economics Association, vol. 22(4), pages 717-50, November.
  8. Hirshleifer, Jack, 1995. "Anarchy and Its Breakdown," Journal of Political Economy, University of Chicago Press, vol. 103(1), pages 26-52, February.
  9. Grieco, Joseph M., 1988. "Anarchy and the limits of cooperation: a realist critique of the newest liberal institutionalism," International Organization, Cambridge University Press, vol. 42(03), pages 485-507, June.
  10. Herschel Grossman, 2000. "The Creation of Effective Property Rights," Working Papers 2000-15, Brown University, Department of Economics.
  11. Bush, Winston C. & Mayer, Lawrence S., 1974. "Some implications of anarchy for the distribution of property," Journal of Economic Theory, Elsevier, vol. 8(4), pages 401-412, August.
  12. Dudley, Leonard, 1990. "Structural change in interdependent bureaucracies: Was Rome's failure economic or military?," Explorations in Economic History, Elsevier, vol. 27(2), pages 232-248, April.
  13. Grossman, Herschel I., 2002. ""Make us a king": anarchy, predation, and the state," European Journal of Political Economy, Elsevier, vol. 18(1), pages 31-46, March.
  14. West, Edwin G., 1991. "Secular cost changes and the size of government : Towards a generalized theory," Journal of Public Economics, Elsevier, vol. 45(3), pages 363-381, August.
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