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Defence specific inflation: A Canadian perspective

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  • Binyam Solomon

Abstract

This paper presents a brief description of the Canadian Department of National Defence (DND) price trend model and the associated chained Laspeyres defence specific price index. The paper also discusses the theoretical justification for and against defence specific inflation (DSI) and presents empirical evidence that explains DSI. Comparative analysis is also conducted with other popular price indices such as the Gross Domestic Product (GDP) deflator and the Consumer Price Index (CPI).

Suggested Citation

  • Binyam Solomon, 2003. "Defence specific inflation: A Canadian perspective," Defence and Peace Economics, Taylor & Francis Journals, vol. 14(1), pages 19-36.
    • Handle: RePEc:taf:defpea:v:14:y:2003:i:1:p:19-36
    DOI: 10.1080/10242690302935
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    References listed on IDEAS

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    1. Ronald Macdonald & Mark P. Taylor, 1992. "Exchange Rate Economics: A Survey," IMF Staff Papers, Palgrave Macmillan, vol. 39(1), pages 1-57, March.
    2. Makridakis, Spyros & Chatfield, Chris & Hibon, Michele & Lawrence, Michael & Mills, Terence & Ord, Keith & Simmons, LeRoy F., 1993. "The M2-competition: A real-time judgmentally based forecasting study," International Journal of Forecasting, Elsevier, vol. 9(1), pages 5-22, April.
    3. John Murray & Simon van Norden & Robert Vigfusson, 1996. "Excess Volatility and Speculative Bubbles in the Canadian Dollar: Real of Imagined?," Technical Reports 76, Bank of Canada.
    4. Brzoska, Michael, 1995. "World military expenditures," Handbook of Defense Economics, in: Keith Hartley & Todd Sandler (ed.), Handbook of Defense Economics, edition 1, volume 1, chapter 3, pages 45-67, Elsevier.
    5. Rogerson, William P., 1995. "Incentive models of the defense procurement process," Handbook of Defense Economics, in: Keith Hartley & Todd Sandler (ed.), Handbook of Defense Economics, edition 1, volume 1, chapter 12, pages 309-346, Elsevier.
    6. Sandler,Todd & Hartley,Keith, 1995. "The Economics of Defense," Cambridge Books, Cambridge University Press, number 9780521447287, October.
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    Cited by:

    1. repec:hal:spmain:info:hdl:2441/fvtnkmt15tlkfv89pa9098csn is not listed on IDEAS
    2. Martial Foucault, 2006. "Europe de la Défense. Quel processus d'allocation ?," Revue économique, Presses de Sciences-Po, vol. 57(3), pages 407-417.
    3. repec:spo:wpmain:info:hdl:2441/fvtnkmt15tlkfv89pa9098csn is not listed on IDEAS
    4. Martial Foucault, 2006. "Europe de la Défense," SciencePo Working papers Main hal-03462142, HAL.
    5. Martial Foucault, 2006. "Europe de la Défense," Post-Print hal-03462142, HAL.
    6. Binyam Solomon, 2005. "The demand for Canadian defence expenditures," Defence and Peace Economics, Taylor & Francis Journals, vol. 16(3), pages 171-189.

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