Defense Spending and Aggregate Output in the United States

Abstract

In this article the effect of defense spending on aggregate output is discussed. Recent publications in this area are reviewed and new additional evidence is provided. The findings presented in this paper are supportive of the positive effect of defense spending. However, in light of the contrary evidence presented in other papers, empirical evidence taken as a whole, suggests that a definitive conclusion about the effect of defense spending at this time should be avoided.Defense spending, Aggregate output, Interest-rate augmented keynesian cross-model, Cointegration, New evidence,

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Should Portuguese economy invest in defense spending? A revisit

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