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Military spending and economic growth: A post-Keynesian model

Author

Listed:
  • Adem Yavuz Elveren

    (Fitchburg State University, U.S.)

  • Ünal Töngür

    (Akdeniz University, Turkey)

  • Tristian Myers

    (Fitchburg State University, U.S.)

Abstract

One important criticism of models of military spending and growth is that they focus on the direct impact, ignoring critical indirect impacts through, for example, income distribution. This paper introduces a post-Keynesian model incorporating military spending that allows workers and capitalists to have different marginal propensities to consume. The model suggests first that civilian spending is more likely to increase the productive capacity of the economy due to higher human capital and, second, that military spending and civilian spending will have different effects on the profit share and the wage share.

Suggested Citation

  • Adem Yavuz Elveren & Ünal Töngür & Tristian Myers, 2023. "Military spending and economic growth: A post-Keynesian model," Economics of Peace and Security Journal, EPS Publishing, vol. 18(2), pages 51-65, October.
    • Handle: RePEc:epc:journl:v:18:y:2023:i:2:p:51-65
    DOI: 10.15355/epsj.18.2.51
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    References listed on IDEAS

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    More about this item

    Keywords

    Post-Keynesian; Neo-Kaleckian growth; Joan Robinson; military expenditure; income distribution; growth;
    All these keywords.

    JEL classification:

    • E11 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Marxian; Sraffian; Kaleckian
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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