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A Computational Analysis of the Effects of Reductions in U.S. Military Expenditures

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  • Fox, A.K.
  • Stern, R.M.

Abstract

With the end of the ‘Cold War’ and attendant fragmentation of the former Soviet Union, Soviet military influence no longer poses a grave threat to international security. The destruction of Iraq’s military capabilities and the opening of the Israeli-Arab dialogue may also have served to reduce the potential for large-scale conflict in the Middle East. The confluence of these remarkable changes suggests that there may now be considerable scope for reduction in military expenditures in the USA especially, as well as in other major countries. It is in this light that we use the computational general equilibrium (CGE) Michigan Model of World Production and Trade to analyse the impact of a 25 per cent unilateral reduction in US military spending.2
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Suggested Citation

  • Fox, A.K. & Stern, R.M., 1992. "A Computational Analysis of the Effects of Reductions in U.S. Military Expenditures," Working Papers 316, Research Seminar in International Economics, University of Michigan.
  • Handle: RePEc:mie:wpaper:316
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    Keywords

    military expenditures ; economic analysis;

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