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Detecting Problems in Military Expenditure Data Using Digital Analysis

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  • Bernhard Rauch
  • Max G�ttsche
  • Stephan Langenegger

Abstract

The UN asks governments to report key figures of their annual military budgets with the aim of creating trust among member states. This goal can only be achieved if the data reported is accurate. However, although there are many reasons for governments to falsify data, the UN does not check for manipulation. In this paper, we apply Benford's law to the military expenditure data of 27 states taken from the UN register. Our analysis of the first digits shows that the states with the greatest deviations from the expected Benford distribution and therefore the lowest data quality are the USA and the UK.

Suggested Citation

  • Bernhard Rauch & Max G�ttsche & Stephan Langenegger, 2014. "Detecting Problems in Military Expenditure Data Using Digital Analysis," Defence and Peace Economics, Taylor & Francis Journals, vol. 25(2), pages 97-111, April.
    • Handle: RePEc:taf:defpea:v:25:y:2014:i:2:p:97-111
    DOI: 10.1080/10242694.2013.763438
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    References listed on IDEAS

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    Cited by:

    1. Rabeea Sadaf, 2017. "Advanced Statistical Techniques For Testing Benford'S Law," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(2), pages 229-238, December.

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