Citation

Avramides CA. Def. Peace Econ. 1997; 8(2): 145-187.

Copyright

(Copyright © 1997, Informa - Taylor and Francis Group)

DOI

10.1080/10430719708404874

PMID

unavailable

Abstract

This paper models and estimates Greek defence spending over the 1950-1989 period. It employs the Stone-Geary welfare function and estimates levels of defence expenditures by the Engle-Granger two-step procedure. The Dickey-Fuller test regression for cointegration is specified in terms of the significance of additional augmentations. The Deaton-Muellbauer functional form is then employed and an estimating equation for the expenditure share of defence is derived. This specification is compared with the levels equation through a number of non-nested tests involving model transformation.