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Dépenses militaires, croissance et bien être : une simulation de l’impact macroéconomique de la R&D défense

Listed author(s):
  • Thierry Laurent

This paper aims at providing a simple economic framework to address a somewhat neglected question of economic policy, namely the optimal share of investments in military R&D in total public spending. In order to capture the long-run impact of tax-financed military R&D on the growth rate, we develop an endogenous growth model in the spirit of Barro [1990]. The model focuses on the optimal sharing of public resources between consumption, civil investment, military R&D and other military expenditures. Taking into account two types of R&D – tax-financed military R&D vs private (non-military) R&D – allows us to analyze how the government manages the optimal allocation of tax resources between public funding of military R&D on the one side, and the provision of subsidies to private R&D on the other side. The results emphasize the key role played by military R&D in enhancing economic growth and welfare in the long run.

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Article provided by Dalloz in its journal Revue d'économie politique.

Volume (Year): 122 (2012)
Issue (Month): 6 ()
Pages: 971-1009

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Handle: RePEc:cai:repdal:redp_226_0971
Contact details of provider: Web page: http://www.cairn.info/revue-d-economie-politique.htm

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  1. van der Ploeg, F & de Zeeuw, A J, 1990. "Perfect Equilibrium in a Model of Competitive Arms Accumulation," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 31(1), pages 131-146, February.
  2. Joshua Aizenman & Reuven Glick, 2006. "Military expenditure, threats, and growth," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 15(2), pages 129-155.
  3. Stefano Bosi & Thierry Laurent, 2006. "Military R&D, Growth and the Optimal Allocation of Governement Spending," Documents de recherche 06-12, Centre d'Études des Politiques Économiques (EPEE), Université d'Evry Val d'Essonne.
  4. Peter Howitt, 2000. "Endogenous Growth and Cross-Country Income Differences," American Economic Review, American Economic Association, vol. 90(4), pages 829-846, September.
  5. Maria Arrazola & Jose de Hevia, 2004. "More on the estimation of the human capital depreciation rate," Applied Economics Letters, Taylor & Francis Journals, vol. 11(3), pages 145-148.
  6. J. Paul Dunne & Ron Smith & Dirk Willenbockel, 2005. "Models Of Military Expenditure And Growth: A Critical Review," Defence and Peace Economics, Taylor & Francis Journals, vol. 16(6), pages 449-461.
  7. Zou, Heng-fu, 1995. "A dynamic model of capital and arms accumulation," Journal of Economic Dynamics and Control, Elsevier, vol. 19(1-2), pages 371-393.
  8. James Murdoch & Chung-Ron Pi & Todd Sandler, 1997. "The impact of defense and non-defense public spending on growth in Asia and Latin America," Defence and Peace Economics, Taylor & Francis Journals, vol. 8(2), pages 205-224.
  9. N. Gregory Mankiw & David Romer & David N. Weil, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 107(2), pages 407-437.
  10. Barro, Robert J, 1990. "Government Spending in a Simple Model of Endogenous Growth," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 103-126, October.
  11. Philippe Aghion & Peter Howitt, 1997. "Endogenous Growth Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011662, January.
  12. Shieh, Jhy-yuan & Lai, Ching-chong & Chang, Wen-ya, 2002. "The impact of military burden on long-run growth and welfare," Journal of Development Economics, Elsevier, vol. 68(2), pages 443-454, August.
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