IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/117145.html
   My bibliography  Save this paper

Efecto del gasto en seguridad en Bienestar y crecimiento económicos en México: Una perspectiva de optimización dinámica
[Effect of security spending on welfare and economic growth in Mexico: a dynamic optimization perspective]

Author

Listed:
  • Hernández-Bautista, Oscar Iván
  • Venegas-Martínez, Francisco

Abstract

RESUMEN: El presente trabajo examina el impacto en el crecimiento económico del gasto en materia de seguridad nacional cuando éste se destina a combatir al crimen organizado. El problema se aborda desde una perspectiva neoclásica, empleando para ello un modelo de crecimiento endógeno estocástico, con el cual se analizan las relaciones dinámicas entre el gasto en seguridad y el crecimiento económico. Se supone que el gasto del crimen organizado sigue un proceso estocástico con reversión a la media, es decir, el gasto tiende a un valor medio en el largo plazo y la rapidez de convergencia es modulada por un parámetro de velocidad de ajuste. Los resultados obtenidos con el modelo propuesto sugieren que hay una repercusión positiva en el crecimiento económico del gasto en seguridad y que depende de la aversión al riesgo de los agentes, mientras que un incremento en los recursos que el crimen organizado emplea para su confrontación contra el estado repercute directamente en forma negativa al crecimiento económico. / ABSTRACT: This paper examines the impact on economic growth of national security spending when used to combat organized crime. The problem is approached from a neoclassical perspective, using a stochastic endogenous growth model, which analyzes the dynamic relationships between security spending and economic growth. It is assumed that organized crime spending follows a mean-reverting stochastic process, that is, spending tends to an average value in the long run and the speed of convergence is modulated by a speed of adjustment parameter. The results obtained with the proposed model suggest that there is a positive impact on economic growth of spending on security and that it depends on the risk aversion of the agents, while an increase in the resources that the organized crime uses for its confrontation with the state has a direct negative impact on economic growth.

Suggested Citation

  • Hernández-Bautista, Oscar Iván & Venegas-Martínez, Francisco, 2023. "Efecto del gasto en seguridad en Bienestar y crecimiento económicos en México: Una perspectiva de optimización dinámica [Effect of security spending on welfare and economic growth in Mexico: a dyna," MPRA Paper 117145, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:117145
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/117145/1/Ivan-Venegas%20Art.%202%20%281%29%20MPRA.pdf
    File Function: original version
    Download Restriction: no
    File URL: https://mpra.ub.uni-muenchen.de/117156/1/Ivan-Venegas%20Art.%203.pdf
    File Function: revised version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Turnovsky, Stephen J, 1993. "Macroeconomic Policies, Growth, and Welfare in a Stochastic Economy," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 34(4), pages 953-981, November.
    2. Gong, Liutang & Zou, Heng-fu, 2003. "Military spending and stochastic growth," Journal of Economic Dynamics and Control, Elsevier, vol. 28(1), pages 153-170, October.
    3. Zou, Heng-fu, 1995. "A dynamic model of capital and arms accumulation," Journal of Economic Dynamics and Control, Elsevier, vol. 19(1-2), pages 371-393.
    4. Barro, Robert J, 1990. "Government Spending in a Simple Model of Endogenous Growth," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 103-126, October.
    5. Stephen J. Turnovsky, 2000. "Methods of Macroeconomic Dynamics, 2nd Edition," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262201232, April.
    6. Robert C. Merton, 1975. "An Asymptotic Theory of Growth Under Uncertainty," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 42(3), pages 375-393.
    7. Francisco Venegas-Martínez & Gabriel Alberto Agudelo Torres & Luis Ceferino Franco Arbeláez & Luis Eduardo Franco Ceballos, 2016. "Precio del dólar estadounidense en el mundo. Procesos de Itô económicamente ponderados en un análisis espacial," Economia y Sociedad., Universidad Michoacana de San Nicolas de Hidalgo, Facultad de Economia, issue 34, pages 83-105, Enero-Jun.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Po‐Sheng Lin & Cheng‐Te Lee, 2012. "Military Spending, Threats And Stochastic Growth," Bulletin of Economic Research, Wiley Blackwell, vol. 64(1), pages 8-19, January.
    2. Posch, Olaf & Trimborn, Timo, 2013. "Numerical solution of dynamic equilibrium models under Poisson uncertainty," Journal of Economic Dynamics and Control, Elsevier, vol. 37(12), pages 2602-2622.
    3. Kwamie Dunbar, 2009. "Stochastic Business Cycle Volatilities, Capital Accumulation and Economic Growth: Lessons from the Global Credit Market Crisis," Working papers 2009-36, University of Connecticut, Department of Economics.
    4. Gong, Liutang & Zou, Heng-fu, 2003. "Military spending and stochastic growth," Journal of Economic Dynamics and Control, Elsevier, vol. 28(1), pages 153-170, October.
    5. Posch, Olaf, 2011. "Risk premia in general equilibrium," Journal of Economic Dynamics and Control, Elsevier, vol. 35(9), pages 1557-1576, September.
    6. Wälde, Klaus, 2011. "Production technologies in stochastic continuous time models," Journal of Economic Dynamics and Control, Elsevier, vol. 35(4), pages 616-622, April.
    7. Shin-Chyang Lee & Cheng-Te Lee & Shang-Fen Wu, 2016. "Military spending and growth: a small open economy stochastic growth model," Defence and Peace Economics, Taylor & Francis Journals, vol. 27(1), pages 105-116, February.
    8. Cheng-te Lee & Shang-fen Wu, 2015. "Military Spending and Stochastic Growth: A Small Open Economy," Economics Bulletin, AccessEcon, vol. 35(4), pages 2026-2036.
    9. Ingrid Ott & Stephen J. Turnovsky, 2006. "Excludable and Non‐excludable Public Inputs: Consequences for Economic Growth," Economica, London School of Economics and Political Science, vol. 73(292), pages 725-748, November.
    10. Thierry Laurent, 2012. "Dépenses militaires, croissance et bien être : une simulation de l’impact macroéconomique de la R&D défense," Revue d'économie politique, Dalloz, vol. 122(6), pages 971-1009.
    11. Clemens, Christiane & Soretz, Susanne, 1999. "Konsequenzen des Zins- und Einkommensrisikos auf das wirtschaftliche Wachstum," Hannover Economic Papers (HEP) dp-221, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    12. Erauskin, Iñaki, 2015. "The net foreign asset position and government size," International Review of Economics & Finance, Elsevier, vol. 35(C), pages 130-148.
    13. Vitor Carvalho & Manuel M. F. Martins, 2011. "Investment and output effects of fiscal consolidations in a new-Keynesian DSGE model for the Euro Area: composition matters?," EcoMod2011 3246, EcoMod.
    14. Ott, Ingrid & Soretz, Susanne, 2002. "Optimal Taxation in a Stochastic Endogenous Growth Model with Congestion," Hannover Economic Papers (HEP) dp-253, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    15. Erauskin, Iñaki, 2013. "The impact of financial openness on the size of utility-enhancing government," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 7, pages 1-56.
    16. Asea, Patrick K. & Turnovsky, Stephen J., 1998. "Capital income taxation and risk-taking in a small open economy," Journal of Public Economics, Elsevier, vol. 68(1), pages 55-90, April.
    17. Cheng-Te Lee, 2022. "Military Spending and Employment," Defence and Peace Economics, Taylor & Francis Journals, vol. 33(4), pages 501-510, May.
    18. D Varvarigos, 2004. "Non-neutrality and Uncertainty in a Model of Growth," Centre for Growth and Business Cycle Research Discussion Paper Series 41, Economics, The University of Manchester.
    19. Erauskin, Iñaki & Turnovsky, Stephen J., 2020. "Financial globalization and its consequences for productive government expenditure," Journal of Macroeconomics, Elsevier, vol. 66(C).
    20. Andrea Baranzini & Francois Bourguignon, 1995. "Is sustainable growth optimal?," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 2(2), pages 341-356, August.

    More about this item

    Keywords

    Equilibrio general; gasto en seguridad pública; crecimiento económico. / General equilibrium; spending on public safety; economic growth.;
    All these keywords.

    JEL classification:

    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:117145. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.