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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: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 1993
Series:IMF Working Papers
Subjects:
Wealth
Macroeconomic Aspects Of International Trade And Finance: Forecasting And Simulation
Private Consumption
Public Finance & Taxation
Saving
Trade: General
Exports And Imports
International Economics
National Accounts
Defense Spending
National Security And War
National Government Expenditures And Related Policies: General
Expenditure
Consumption; Economics
International Trade
Expenditures, Public
Consumption
Macroeconomics
Macroeconomics: Consumption
Public Finance
Imports
United States
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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
Physical Description:48 pages
ISBN:9781451843460

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