The political economy of the peace dividend

✍ Scribed by Dwight R. Lee; Richard K. Vedder

• Book ID: 104633965
• Publisher: Springer US
• Year: 1996
• Tongue: English
• Weight: 809 KB
• Volume: 88
• Category: Article
• ISSN: 0048-5829
• DOI: 10.1007/bf00130407

✦ Synopsis

We develop a model of the peace dividend and use it to predict the fiscal consequences of a reduction in the demand for military spending. The model is based on the assumption that the political process responds to political demands and costs in a way that maximizes net political benefits. The predictions of our model on how a peace dividend will be allocated over nonmilitary spending, tax relief, and deficit reduction is tested against the experience of eight major wars in United States history.