Article by Julien Malizard, in collaboration with Josselin Drof.
Presented at the International Conference on Economics and Security, held in Perugia, Italy, on Thursday 19 and Friday 20 June 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 defence 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.»
