| ID | 177826 |
| Title Proper | Military Expenditures and Income Inequality Evidence from a Panel of Transition Countries (1990-2015) |
| Language | ENG |
| Author | Caruso, Raul ; Biscione, Antonella |
| Summary / Abstract (Note) | This paper contributes to the literature on military spending by analyzing the relationship between military spending and income inequality in a panel of transition economies over the period 1990–2015. In particular, we exploit three different measures of military expenditures: (i) military spending in absolute terms; (ii) military expenditures per capita; (iii) military burden, namely the ratio between military expenditure and GDP. Findings highlight a positive relationship between military expenditures and income inequality captured by means of three different measures of inequality. Results are also confirmed after we performed a variety of robustness tests. Other results are worth noting and somehow puzzling. For example, military conscription appears to have a redistributional effect and when considering a non-linearity the results show that there could be a concave relationship between military spending and income inequality. In addition, when testing for the ‘crowding-out argument’ results show that expenditures for subsidies are negatively influenced by military spending so confirming the crowding-out argument but there is no significant evidence when considering education and health expenditures. |
| `In' analytical Note | Defence and Peace Economics Vol. 32, No.1; Jan 2021: p.46-67 |
| Journal Source | Defence and Peace Economics Vol: 32 No 1 |
| Key Words | Military Expenditures ; Political regime ; Transition Economies ; Income Inequality |