DOES DEFENSE SPENDING REALLY PROMOTE AGGREGATE OUTPUT IN THE UNITED STATES?Footnote∗

∗ The views expressed in this paper are those of the authors and do not necessarily reflect the official policy or position of the US Air Force, the Department of Defense, or the US Government. The authors would like to express their thanks for the comments from Craig Stone and the other participants at the 2006 Canadian Economics Association conference, as well the comments received from three anonymous referees and the editor.

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