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The Political Economy of the Peace Dividend

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  • Lee, Dwight R
  • Vedder, Richard K

Abstract

The authors develop a model of the peace dividend and use it to predict the fiscal consequences of a reduction in the demand for military spending. The model is based on the assumption that the political process responds to political demands and costs in a way that maximizes net political benefits. The predictions of the authors' model on how a peace dividend will be allocated over nonmilitary spending, tax relief, and deficit reduction is tested against the experience of eight major wars in U.S. history. Copyright 1996 by Kluwer Academic Publishers

Suggested Citation

  • Lee, Dwight R & Vedder, Richard K, 1996. "The Political Economy of the Peace Dividend," Public Choice, Springer, vol. 88(1-2), pages 29-42, July.
    • Handle: RePEc:kap:pubcho:v:88:y:1996:i:1-2:p:29-42
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