“…First, it relates to the literature on military budgets, institutions, and conflicts (see, among others, Hoeffler, 2004, 2006;Dunne et al, 2008;Gadea et al, 2004;Yildrim and Sezgin, 2005;Nikolaidou, 2008;Dunning, 2011;Gebremedhin and Mavisakalyan, 2013). Democratic institutions regulate the allocation of power and help to prevent conflicts (see Acemoglu andRobinson, 2006, 2008).…”