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Applied Economics Volume 28, 1996 - Issue 1
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Original Articles

Is a military really a luxury good: An international panel study of LDCs

Howard J. Wall Department of Economics, Brikbeck College, University of London, 7-15 Gresse Street, London, WIP 2LL, UK
Pages 41-44 | Published online: 28 Jul 2006
 
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Abstract

This paper introduces country-specific fixed effects into a theoretical and empirical model of military expenditure. Contrary to the existing literature, the model indicates that the share of military expenditure decreases with a country's income.

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