| Author: | Seiglie, C. |
| Title: | Defence spending in a neo-Ricardian world |
| Journal: | Economica
1998 : MAY, VOL. 65:258, p. 193-210 |
| Index terms: | DEFENCE GOVERNMENT SPENDING PATTERNS NATIONAL BUDGETS |
| Language: | eng |
| Abstract: | Once we recognize that government acts as an intermediary between generations in the provision of national defence, Ricardian equivalence no longer holds. The level of public debt is positively related to defence spending since this component of government expenditures insures the transferability of bequests as well as protecting savings. Defence spending has an adverse effect on both national saving and the saving rate that has not been considered in the economic growth literature. |
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