How is the rise in national defense spending affecting the Tenth District economy?
In 2007, the United States spent over $650 billion on national defense. Even after adjusting for inflation, this was the largest annual amount since 1945, surpassing previous post-World War II peaks reached during the Korean, Vietnam, and Cold wars. Defense spending has risen steadily this decade, today accounting for nearly 5 percent of overall gross domestic product—about the same share as residential construction. ; National defense represents an even larger share of economic activity in the Tenth Federal Reserve District. The region is home to some of the country's largest military installations, a number of private defense contractors, and a disproportionately large number of reservists and National Guardsmen. ; Is the buildup in national defense stimulating the economies of the states in the Tenth District? Wilkerson and Williams find that, relative to the nation, increased defense spending is likely to help the region more in the long run than the short run. Since 2001, defense spending has risen more moderately in the district than the nation, due primarily to slower growth in the types of defense activities concentrated in the region. Still, the region is poised for an expansion of defense spending in the future. And the region benefits from a less cyclical defense sector than that of the nation.
Volume (Year): (2008)
Issue (Month): Q II ()
|Contact details of provider:|| Postal: One Memorial Drive, Kansas City, MO 64198|
Phone: (816) 881-2254
Web page: http://www.kansascityfed.org
More information through EDIRC
|Order Information:|| Email: |
References listed on IDEAS
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.:
- Bilmes, Linda & Stiglitz, Joseph E., 2006.
"The Economic Costs of the Iraq War: An Appraisal Three Years after the Beginning of the Conflict,"
Working Paper Series
rwp06-002, Harvard University, John F. Kennedy School of Government.
- Linda Bilmes & Joseph Stiglitz, 2006. "The Economic Costs of the Iraq War: An Appraisal Three Years After the Beginning of the Conflict," NBER Working Papers 12054, National Bureau of Economic Research, Inc.
- Linda Bilmes & Joseph E. Stiglitz, 2006. "The Economic Costs of the Iraq War: An Appraisal Three Years After the Beginning of the Conflict," Working Papers id:387, eSocialSciences.
- Jesús Crespo Cuaresma & Gerhard Reitschuler, 2006.
"'Guns Or Butter?' Revisited: Robustness And Nonlinearity Issues In The Defense-Growth Nexus,"
Scottish Journal of Political Economy,
Scottish Economic Society, vol. 53(4), pages 523-541, 09.
- Jesús Crespo Guaresma & Gerhard Reitschuler, 2003. ""Guns or Butter?" Revisited: Robustness and Nonlinearity Issues in the Defense-Grotwth Nexus," Vienna Economics Papers 0310, University of Vienna, Department of Economics.
- Joshua Aizenman & Reuven Glick, 2003.
"Military expenditure, threats, and growth,"
Working Paper Series
2003-08, Federal Reserve Bank of San Francisco.
- 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.
- Aizenman, Joshua & Glick, Reuven, 2003. "Military Expenditure, Threats, and Growth," Santa Cruz Center for International Economics, Working Paper Series qt41r4105h, Center for International Economics, UC Santa Cruz.
- Joshua Aizenman & Reuven Glick, 2003. "Military Expenditure, Threats, and Growth," NBER Working Papers 9618, National Bureau of Economic Research, Inc.
- Aizenman, Joshua & Glick, Reuven, 2003. "Military Expenditure, Threats, and Growth," Santa Cruz Department of Economics, Working Paper Series qt41r4105h, Department of Economics, UC Santa Cruz.
- Radha Bhattacharya, 2003. "Sources of variation in regional economies," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 37(2), pages 291-302, 05.
- Hooker, Mark A & Knetter, Michael M, 1997. "The Effects of Military Spending on Economic Activity: Evidence from State Procurement Spending," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 29(3), pages 400-421, August.
- H. Sonmez Atesoglu, 2004. "Defense spending and investment in the United States," Journal of Post Keynesian Economics, M.E. Sharpe, Inc., vol. 27(1), pages 163-170, October.
- Landau, Daniel, 1996. "Is one of the 'peace dividends' negative? Military expenditure and economic growth in the wealthy OECD countries," The Quarterly Review of Economics and Finance, Elsevier, vol. 36(2), pages 183-195.
- Ram, Rati, 1995. "Defense expenditure and economic growth," Handbook of Defense Economics, in: Keith Hartley & Todd Sandler (ed.), Handbook of Defense Economics, edition 1, volume 1, chapter 10, pages 251-274 Elsevier.
- Manuel Trajtenberg, 2003. "Defense R&D Policy in the Anti-terrorist Era," NBER Working Papers 9725, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:fip:fedker:y:2008:i:qii:p:49-79:n:v.93no.2. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (LDayrit)
If references are entirely missing, you can add them using this form.