| ID | 185488 |
| Title Proper | Military Spending and Employment |
| Language | ENG |
| Author | Lee, Cheng-Te |
| Summary / Abstract (Note) | This paper constructs a theoretical model involving supply-side effect, demand-side effect, and security effect produced by military spending to explore the effects of military spending and foreign military threat on employment. This paper proves that the relationship between defense burden and employment is nonlinear (i.e., reverse U shape.). Hence, we find the defense burden of maximizing employment. In addition, we argue that a rise in foreign military threat will be detrimental to the level of output and in turn lead to a reduction in employment. Finally, we show that an increase in the variance of the foreign military spending shocks will raise the level of output and then lead to an increase in employment. |
| `In' analytical Note | Defence and Peace Economics Vol. 33, No.4; Jun 2022: p.501-510 |
| Journal Source | Defence and Peace Economics Vol: 33 No 4 |
| Key Words | Military Spending ; Military Threat ; Employment |