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Guns, Economic Growth and Education during the second half of the Twentieth Century: Was Spain different?

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Abstract

In the past decades, numerous studies have been conducted on the trade-off between guns and butter, namely defense versus social sector expenditure. The aim of this research is identifying whether indeed defense spending crowded out investment and other social expenditures as health and education. Previous research does not yield strong and unambiguous evidence of neither positive nor negative effects of military expenditure on social spending. It is striking that the guns versus butter dilemma has not been extensively studied for Spain. Using Mintz and Huang (1991) strategy applied to the US, we test if the government expenditure in defense in Spain during the last part of the Franco’s dictatorship and the first years of the transition and democracy, contributed positively or negatively to education spending. Results show a negative trade-off for the Franco’s regimen and an ambiguous effect for the last part of the sample.

Suggested Citation

  • José Jurado Sánchez & Juan Ángel Jiménez Martín, 2014. "Guns, Economic Growth and Education during the second half of the Twentieth Century: Was Spain different?," Documentos de Trabajo del ICAE 2014-14, Universidad Complutense de Madrid, Facultad de Ciencias Económicas y Empresariales, Instituto Complutense de Análisis Económico.
  • Handle: RePEc:ucm:doicae:1414
    Note: This author acknowledges financial support from the Ministerio de Ciencia y Tecnología of Spain through the research project ECO2012-31941.
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    1. Hollenhorst, Jerry & Ault, Gary, 1971. "An Alternative Answer to: Who Pays for Defense?1," American Political Science Review, Cambridge University Press, vol. 65(3), pages 760-763, September.
    2. Enriqueta Camps, 2013. "The impact of investment in education on economic development: Spain in comparative perspective (1860-2000)," Economics Working Papers 1373, Department of Economics and Business, Universitat Pompeu Fabra.
    3. Domke, William K. & Eichenberg, Richard C. & Kelleher, Catherine M., 1983. "The Illusion of Choice: Defense and Welfare in Advanced Industrial Democracies, 1948-1978," American Political Science Review, Cambridge University Press, vol. 77(1), pages 19-35, March.
    4. Ram, Rati, 1986. "Government Size and Economic Growth: A New Framework and Some Evidencefrom Cross-Section and Time-Series Data," American Economic Review, American Economic Association, vol. 76(1), pages 191-203, March.
    5. Russett, Bruce M., 1969. "Who Pays for Defense?1," American Political Science Review, Cambridge University Press, vol. 63(2), pages 412-426, June.
    6. Smith, Ronald P., 1980. "Military expenditure and investment in OECD countries, 1954-1973," Journal of Comparative Economics, Elsevier, vol. 4(1), pages 19-32, March.
    7. Russett, Bruce, 1982. "Defense Expenditures and National Well-being," American Political Science Review, Cambridge University Press, vol. 76(4), pages 767-777, December.
    8. Jãœlä°De Yildirim & Selami Sezgin, 2002. "Defence, Education and Health Expenditures in Turkey, 1924-96," Journal of Peace Research, Peace Research Institute Oslo, vol. 39(5), pages 569-580, September.
    9. José Jurado Sánchez, 2012. "¿Se financió la defensa a costa del gasto social y la economía en el siglo XX? El dilema cañones versus mantequilla," Hacienda Pública Española / Review of Public Economics, IEF, vol. 203(4), pages 89-117, December.
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    Keywords

    Guns versus butter dilemma; Military spending; Economic growth and social expenditures; Education spending; Spain from 1950 to 2000.;

    JEL classification:

    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • N40 - Economic History - - Government, War, Law, International Relations, and Regulation - - - General, International, or Comparative
    • N44 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Europe: 1913-

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