IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Military Expenditures and Inequality: Empirical Evidence from Israel

  • Ucal, Meltem
  • Karabulut, Gokhan
  • Bilgin, Mehmet Huseyin

The aim of this paper is to examine different shocks to Israel’s business cycle from 1960 to 2007 in terms of the relationship between military expenditures and inequality, Gini coefficient. We begin with the assumption that there is a direct effect of higher military expenditures on income inequality levels in Israel. To capture this, we use the structural vector autoregressive (SVAR) model to conduct this kind of different shock analysis and find that military expenditures shock (a rise) has a statistically significant effect on the Gini coefficient index after the first 3 years. This finding implies that military expenditures policies lead to inequality (Gini coefficient) in Israel.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: https://mpra.ub.uni-muenchen.de/48643/1/MPRA_paper_48643.pdf
File Function: original version
Download Restriction: no

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 48643.

as
in new window

Length:
Date of creation: 13 Sep 2009
Date of revision:
Handle: RePEc:pra:mprapa:48643
Contact details of provider: Postal: Schackstr. 4, D-80539 Munich, Germany
Phone: +49-(0)89-2180-2219
Fax: +49-(0)89-2180-3900
Web page: https://mpra.ub.uni-muenchen.de

More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Sims, Christopher A, 1980. "Macroeconomics and Reality," Econometrica, Econometric Society, vol. 48(1), pages 1-48, January.
  2. Chester, Eric, 1978. "Military Spending and Capitalist Stability," Cambridge Journal of Economics, Oxford University Press, vol. 2(3), pages 293-98, September.
  3. Kalyoncu, Huseyin & Yucel, Fatih, 2005. "An analytical approach on defense expenditure and economic growth: the case of Turkey and Greece," MPRA Paper 4262, University Library of Munich, Germany, revised 2006.
  4. Erdal Karagol & Serap Palaz, 2004. "Does defence expenditure deter economic growth in Turkey? A cointegration analysis," Defence and Peace Economics, Taylor & Francis Journals, vol. 15(3), pages 289-298.
  5. By Davoodi & Benedict Clements & Jerald Schiff & Peter Debaere, 2001. "Military Spending, the Peace Dividend, and Fiscal Adjustment," IMF Staff Papers, Palgrave Macmillan, vol. 48(2), pages 4.
  6. Julide Yildirim & Selami Sezgin, 2003. "Military expenditure and employment in Turkey," Defence and Peace Economics, Taylor & Francis Journals, vol. 14(2), pages 129-139.
  7. Matthew D. Shapiro & Mark W. Watson, 1988. "Sources of Business Cycle Fluctuations," Cowles Foundation Discussion Papers 870, Cowles Foundation for Research in Economics, Yale University.
  8. Smith, Ron P, 1978. "Military Expenditure and Capitalism: A Reply," Cambridge Journal of Economics, Oxford University Press, vol. 2(3), pages 299-304, September.
  9. Thilo Klein, 2004. "Military expenditure and economic growth: peru 1970-1996," Defence and Peace Economics, Taylor & Francis Journals, vol. 15(3), pages 275-288.
  10. Banerjee, Abhijit V & Duflo, Esther, 2003. " Inequality and Growth: What Can the Data Say?," Journal of Economic Growth, Springer, vol. 8(3), pages 267-99, September.
  11. François Bourguignon & Christian Morrisson, 2001. "Inequality among World Citizens : 1820-1992," DELTA Working Papers 2001-18, DELTA (Ecole normale supérieure).
  12. Lin, Eric S. & Ali, Hamid E., 2009. "Military Spending and Inequality: Panel Granger Causality Test," MPRA Paper 40159, University Library of Munich, Germany.
  13. Carlos Seiglie, 1997. "Deficits, Defense, and Income Redistribution," Cato Journal, Cato Journal, Cato Institute, vol. 17(1), pages 11-21, Spring/Su.
  14. Wayne Nafziger, E. & Auvinen, Juha, 2002. "Economic Development, Inequality, War, and State Violence," World Development, Elsevier, vol. 30(2), pages 153-163, February.
  15. J Paul Dunne & Ron Smith & Dirk Willenbockel, 2004. "Models of Military Expenditure and Growth: A Critical Review," Working Papers 0408, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol.
  16. Alberto Alesina & Roberto Perotti, 1993. "Income Distribution, Political Instability, and Investment," NBER Working Papers 4486, National Bureau of Economic Research, Inc.
  17. Clarke, George R. G., 1995. "More evidence on income distribution and growth," Journal of Development Economics, Elsevier, vol. 47(2), pages 403-427, August.
  18. Giannini, Carlo & Lanzarotti, Antonio & Seghelini, Mario, 1995. "A traditional interpretation of macroeconomic fluctuations: The case of Italy," European Journal of Political Economy, Elsevier, vol. 11(1), pages 131-155, March.
  19. Hirnissa, M.T & Habibullah, M.S. & Baharom, A.H., 2008. "Defense and Inequality: Evidence from Selected ASIAN Countries," MPRA Paper 11916, University Library of Munich, Germany.
  20. Hamid Ali, 2007. "Military Expenditures And Inequality: Empirical Evidence From Global Data," Defence and Peace Economics, Taylor & Francis Journals, vol. 18(6), pages 519-535.
  21. David R. Henderson & Robert M. McNab & Tamas Rozsas, 2008. "Did Inequality Increase in Transition?: An Analysis of the Transition Countries of Eastern Europe and Central Asia," Eastern European Economics, M.E. Sharpe, Inc., vol. 46(2), pages 28-49, March.
  22. Strawczynski, Michel, 1999. "Income uncertainty and the demand for annuities," Economics Letters, Elsevier, vol. 63(1), pages 91-96, April.
  23. Perotti, Roberto & Alesina, Alberto, 1996. "Income Distribution, Political Instability, and Investment," Scholarly Articles 4553018, Harvard University Department of Economics.
  24. Abell, John D, 1990. "Defence Spending and Unemployment Rates: An Empirical Analysis Disaggregated by Race," Cambridge Journal of Economics, Oxford University Press, vol. 14(4), pages 405-19, December.
  25. Christos Kollias & Charis Naxakisb & Leonidas Zarangasb, 2004. "Defence Spending and Growth in Cyprus: A Causal Analysis," Defence and Peace Economics, Taylor & Francis Journals, vol. 15(3), pages 299-307.
  26. Reitschuler, Gerhard & Loening, Josef L., 2005. "Modeling the Defense-Growth Nexus in Guatemala," World Development, Elsevier, vol. 33(3), pages 513-526, March.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:48643. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.