“Defense spending in a time of debt : the case of France”

Article de Julien Malizard, en collaboration avec Josselin Drof.

Présenté à l’occasion de l’International Conference on Economics and Security, qui s’est déroulée à Pérouse, Italie, les jeudi 19 et vendredi 20 juin 2014.

“France faces budgetary issues but wants to preserve its fairly interventionist position. We hypothesize that both budgetary and strategic constraints are relevant to explain the main determinants of defense spending in France. Our empirical application uses data covering the period 1980-2010. The results give support to our hypotheses. We also exploit disaggregated data for defense spending. Using these data, we give a richer pattern for French demand function and show that equipment spending has a greater sensitivity to budgetary constraints than non-equipment spending.”

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