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Guns and growth: The economic consequences of defense buildups

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  • Ilzetzki, Ethan

Abstract

This paper investigates how an increase in military expenditures affects an economy. It is written in the context of rising geopolitical tensions that have spurred increased military spending in the United States, Europe, and other economic areas. It draws on a large literature in macroeconomics, public finance, defense and peace studies, economic history, and the study of productivity to evaluate the short- and long-run consequences of rearmament.

Suggested Citation

  • Ilzetzki, Ethan, 2025. "Guns and growth: The economic consequences of defense buildups," Kiel Report 2, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkrp:311212
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