Economic Consequences of Lower Military Spending : Some Simulation Results /

The IMF MULTIMOD model is used to trace the economic impact of a 20 percent reduction in world military expenditures. GDP falls in the short run, however private consumption and investment rise, leading to an increase in GDP in the medium and long run. The estimated gains to economic welfare are sub...

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Bibliographic Details
Main Author: Schiff, Jerald
Other Authors: Bayoumi, Tamim, Hewitt, Daniel
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 1993.
Series:IMF Working Papers; Working Paper ; No. 1993/017
Online Access:Full text available on IMF
Description
Summary:The IMF MULTIMOD model is used to trace the economic impact of a 20 percent reduction in world military expenditures. GDP falls in the short run, however private consumption and investment rise, leading to an increase in GDP in the medium and long run. The estimated gains to economic welfare are substantial, particularly for developing countries, although most of these gains are realized in the long run. A positive international economic externality is found to exist, implying that for any given country the economic gains from a coordinated reduction in military expenditures exceed the gains from a unilateral reduction.
Item Description:<strong>Off-Campus Access:</strong> No User ID or Password Required
<strong>On-Campus Access:</strong> No User ID or Password Required
Physical Description:1 online resource (48 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Access:Electronic access restricted to authorized BRAC University faculty, staff and students