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Officer Retention and Military Spending—The Rise of the Military Industrial Complex duringthe Second World War

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  • Ahmed S. Rahman

    (United States Naval Academy)

Abstract

This paper examines how the region of origin of top military personnel within the U.S. Navy contributed to military expenditures around the country. We first discuss a theory of political economy for military spending--officers who remain in service eventually can help channel military funds and em- ployment to their respective regions of origin, either through political chan- nels or difusion of military culture. Further, if officer retention is positively related to poorer economic conditions at home (fewer work opportunities at home induces greater service lengths), military spending will tend to be progressive. To test these ideas we use personnel records of officers serv- ing in the U.S. Navy from 1870 to the late 1930s. Tracking the tenure of all officers, we construct measures of "military representation" across U.S. counties. We find that naval officer representation positively and robustly predicts regional naval spending (but not spending from other branches) during World War II.

Suggested Citation

  • Ahmed S. Rahman, 2017. "Officer Retention and Military Spending—The Rise of the Military Industrial Complex duringthe Second World War," Departmental Working Papers 62, United States Naval Academy Department of Economics.
    • Handle: RePEc:usn:usnawp:62
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    References listed on IDEAS

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    1. Phoebe Kotlikoff & Ahmed S. Rahman & Katherine A. Smith, 2022. "Minding the gap: academic outcomes from pre-college programs," Education Economics, Taylor & Francis Journals, vol. 30(1), pages 3-28, January.

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