Article by Julien Malizard.
«This article explores the effects of military expenditure on aggregate output in France, covering the period 1980-2010, within a Keynesian model. Our empirical results reveal that military spending stimulates output, even if non-military spending exerts higher impact. However, the originality of our contribution comes from the use of disaggregated data. Consequently, it is possible to characterize composition effects of military spending: defense equipment spending stimulates the aggregate output whereas defense non-equipment spending has no significant impact.»
