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How Resilient Are Military Expenditures?

Author

Listed:
  • Paula De Masi

    (International Monetary Fund)

  • Henri Lorie

    (International Monetary Fund)

Abstract

Changes in military expenditure as a share of gross domestic product (MIL/GDP) and of total expenditure (MIL/EX) during IMF-supported programs are examined for two subsamples, broadly divided according to fiscal tightening and fiscal accommodation. Under fiscal tightening, the evidence suggests that MIL/GDP decreases during Fund-supported programs, but that MIL/EX increases, revealing resilience to budgetary adjustments. Under fiscal accommodation, as total government expenditure tends to increase, so does military expenditure; the ratio MIL/EX declines, however, because fewer additional resources are allocated to the military.

Suggested Citation

  • Paula De Masi & Henri Lorie, 1989. "How Resilient Are Military Expenditures?," IMF Staff Papers, Palgrave Macmillan, vol. 36(1), pages 130-165, March.
    • Handle: RePEc:pal:imfstp:v:36:y:1989:i:1:p:130-165
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    Cited by:

    1. Gulay Gunluk-Senesen, 2002. "Budgetary trade-offs of security expenditures in Turkey," Defence and Peace Economics, Taylor & Francis Journals, vol. 13(5), pages 385-403.
    2. Unal Tongur & Sara Hsu & Adem Yavuz Elveren, 2013. "Military Expenditures and Political Regimes: An Analysis Using Global Data, 1963-2001," ERC Working Papers 1307, ERC - Economic Research Center, Middle East Technical University, revised Jul 2013.

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