Citation

Atesoglu HS. Def. Peace Econ. 2002; 13(1): 55-60.

Copyright

(Copyright © 2002, Informa - Taylor and Francis Group)

DOI

10.1080/10242690210963

PMID

unavailable

Abstract

This paper provides new evidence on the question of the effects of defense spending on aggregate output in the United States. Earlier studies of this basic issue relied on traditional econometric techniques and the neoclassical production function theory. In this paper, recently developed cointegration methodology and modeling that is inspired by new macroeconomic theory is employed. The results from earlier studies concerning the effects of defense spending are mixed. The findings presented in this paper reveal that there is a quantitatively important and positive relation between defense spending and aggregate output in the United States.