| ID | 155298 |
| Title Proper | Military spending and budget deficits |
| Other Title Information | the impact of US military spending on public debt in Europe (1988–2013) |
| Language | ENG |
| Author | Caruso, Raul ; Marco Di Domizio ; Domizio, Marco Di |
| Summary / Abstract (Note) | The aim of this paper is to study the relationship between military spending and sovereign debt in a panel of 13 European countries. In particular, under the assumption of the interdependence of military spending between US and European countries, we analyse whether US military spending affected European sovereign debt in the period 1988–2013. The empirical estimation is based on different steps: (i) a unit root test; (ii) an Arellano–Bond panel estimation and a linear fixed effect model; and (iii) a FMOLS estimation to highlight the long run relationship between debt and relevant variables. General results highlight that debt burden of European countries is: (1) positively associated with US military burden and (2) negatively associated with average military burden of other European countries. |
| `In' analytical Note | Defence and Peace Economics Vol. 28, No.5; Oct 2017: p.534-549 |
| Journal Source | Defence and Peace Economics Vol: 28 No 5 |
| Key Words | Military Spending ; Interdependence ; Panel Cointegration ; Public Debt ; Arellano Bond ; Fixed Effect ; Fully Modified OLS |