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Military draft and economic growth in oecd countries

Author

Listed:
  • Keller, Katarina
  • Poutvaara, Panu
  • Wagener, Andreas

Abstract

Economic theory predicts that military conscription is associated with static inefficiencies as well as with dynamic distortions of the accumulation of human and physical capital. Relative to an economy with an all-volunteer force, output levels and growth rates should be lower in countries that rely on a military draft to recruit their army personnel. For OECD countries, we show that military conscription indeed has a statistically significantly negative impact on economic performance.

Suggested Citation

  • Keller, Katarina & Poutvaara, Panu & Wagener, Andreas, 2009. "Military draft and economic growth in oecd countries," Munich Reprints in Economics 19477, University of Munich, Department of Economics.
    • Handle: RePEc:lmu:muenar:19477
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    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models

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