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Individual preferences and the demand for military expenditure

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  • David Throsby
  • Glenn Withers

Abstract

Whose preferences determine the tradeoff between security and civilian output in deciding upon budget allocations to defence? This paper considers the role that consumer preferences might play in influencing military spending. We propose normative criteria to judge the economic or political efficiency of defence provision at a given time, and test them using Australian survey-based micro-data. Our results suggest that the political system has not delivered a simple social-choice translation of individual preferences into collective outcomes, nor has it delivered results consistent with simple majority-voting median preferences.

Suggested Citation

  • David Throsby & Glenn Withers, 2001. "Individual preferences and the demand for military expenditure," Defence and Peace Economics, Taylor & Francis Journals, vol. 12(2), pages 87-102.
    • Handle: RePEc:taf:defpea:v:12:y:2001:i:2:p:87-102
    DOI: 10.1080/10430710108404979
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    References listed on IDEAS

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    1. Sandler,Todd & Hartley,Keith, 1995. "The Economics of Defense," Cambridge Books, Cambridge University Press, number 9780521447287.
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    Cited by:

    1. Salmai Qari & Tobias Börger & Tim Lohse & Jürgen Meyerhoff, 2023. "The Value of National Defense: Assessing Public Preferences for Defense Policy Options," CESifo Working Paper Series 10872, CESifo.
    2. Torero, Maximo & Chowdhury, Shyamal K. & Galdo, Virgilio, 2003. "Willingness to pay for the rural telephone service in Bangladesh and Peru," Information Economics and Policy, Elsevier, vol. 15(3), pages 327-361, September.
    3. Andr�s Navarro-Galera & Francisco Mu�oz-Leyva & Rodrigo Iv�n Ortúzar Maturana & Juan Lara Rubio, 2014. "Factors influencing the modernization of military-investment economic appraisal systems," Defence and Peace Economics, Taylor & Francis Journals, vol. 25(6), pages 577-604, December.
    4. Gonzalo F-de-Córdoba & José L. Torres, 2016. "National security, military spending and the business cycle," Defence and Peace Economics, Taylor & Francis Journals, vol. 27(4), pages 549-570, August.

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