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Military in politics and budgetary allocations

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  • Bove, Vincenzo
  • Nisticò, Roberto

Abstract

This paper investigates the effect of military involvement in politics on budgetary allocations for defence. We employ a variety of econometric models, including pooled OLS and panel data with fixed effects and control for other known determinants of military spending. To deal with endogeneity issues, we also use an IV methodology and find that a higher degree of military involvement in policy-making increases the probability that the military obtain a larger share of output.

Suggested Citation

  • Bove, Vincenzo & Nisticò, Roberto, 2014. "Military in politics and budgetary allocations," Journal of Comparative Economics, Elsevier, vol. 42(4), pages 1065-1078.
  • Handle: RePEc:eee:jcecon:v:42:y:2014:i:4:p:1065-1078
    DOI: 10.1016/j.jce.2014.02.002
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    Cited by:

    1. Bove Vincenzo & Elia Leandro & Pelliccia Marco, 2016. "Centrality in Trade Networks and Investment in Security," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 22(1), pages 27-39, January.
    2. Aney, Madhav S. & Ko, Giovanni, 2015. "Expropriation risk and competition within the military," European Journal of Political Economy, Elsevier, vol. 39(C), pages 125-149.
    3. Vincenzo Bove & Roberto Nisticò, 2014. "Coups d’état and defense spending: a counterfactual analysis," Public Choice, Springer, vol. 161(3), pages 321-344, December.
    4. Raul Caruso, 2015. "Beyond deterrence and decline. Towards a general understanding of peace economics," Rivista Internazionale di Scienze Sociali, Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore, vol. 128(1), pages 57-74.
    5. repec:sae:joupea:v:54:y:2017:i:6:p:791-805 is not listed on IDEAS

    More about this item

    Keywords

    Military in politics; Military expenditure; IV estimates;

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War

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