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The Keynesian IS-MR Model and Military Spending

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  • W. Robert J. Alexander

Abstract

The issue of guns or butter is one of the most fundamental economic questions, yet there is no consensus on a theoretical framework for examining it. Over the last decade, a version of a simple Keynesian macroeconomic model has been applied a number of times to examining the link between defence spending and economic growth in a range of countries. There are reasons for doubting the soundness of this model as a basis for empirical work.

Suggested Citation

  • W. Robert J. Alexander, 2015. "The Keynesian IS-MR Model and Military Spending," Defence and Peace Economics, Taylor & Francis Journals, vol. 26(2), pages 213-221, April.
    • Handle: RePEc:taf:defpea:v:26:y:2015:i:2:p:213-221
    DOI: 10.1080/10242694.2013.857449
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    References listed on IDEAS

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