Citation

Dunne JP, Perlo-Freeman S. Def. Peace Econ. 2003; 14(6): 461-474.

Copyright

(Copyright © 2003, Informa - Taylor and Francis Group)

DOI

10.1080/1024269032000085224

PMID

unavailable

Abstract

Estimating demand functions for developing countries before and after the end of the Cold War, Dunne and Perlo-Freeman (2003) found little evidence of any change in the underlying relationship. One concern with their analysis was that the use of cross-section averages might have obscured important time series effects. This paper deals with this issue by analysing their data using static and dynamic panel data methods. This produces evidence of a change in relationship and suggests that the focus in the literature on cross-section analyses has indeed limited our understanding of important dynamic processes at work within countries.

An earlier version of this paper was presented to the Second CesA/IDN - International Conference on Defence Economics and Security in Mediterranean and Sub-Saharan Africa.