On the relationship between defense and non-defense spending in the U.S. during the world wars

Roel M.W.J. Beetsma; Alex Cukierman; Massimo Giuliodori

doi:10.1016/j.econlet.2006.11.017

On the relationship between defense and non-defense spending in the U.S. during the world wars

Roel M.W.J. Beetsma^*, Alex Cukierman, Massimo Giuliodori

^*Corresponding author for this work

School of Economics

Research output: Contribution to journal › Article › peer-review

Abstract

We show that U.S. defense and non-defense expenditures were positively correlated during World War I and negatively during World War II. We rationalize this pattern in a model with falling spending complementarities and rising marginal tax distortions as government grows.

Original language	English
Pages (from-to)	415-421
Number of pages	7
Journal	Economics Letters
Volume	95
Issue number	3
DOIs	https://doi.org/10.1016/j.econlet.2006.11.017
State	Published - Jun 2007

Keywords

Correlation
Defense expenditures
Non-defense expenditures
Taxation
World Wars

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10.1016/j.econlet.2006.11.017

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title = "On the relationship between defense and non-defense spending in the U.S. during the world wars",

abstract = "We show that U.S. defense and non-defense expenditures were positively correlated during World War I and negatively during World War II. We rationalize this pattern in a model with falling spending complementarities and rising marginal tax distortions as government grows.",

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On the relationship between defense and non-defense spending in the U.S. during the world wars

Abstract

Keywords

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