Abstract
Public spending on defense has become one of the most recent and complex research topics in macroeconomic policy analysis, which affects both economic growth and the welfare of society. Literature demands works that address the optimal calculation of military spending. This paper tries to respond to the estimation approach used to calculate military spending. Both a DSGE model (theoretical approach), a VAR model (empirical approach) and a DSGE-VAR model (combined approach) are developed. Our results indicate that the DSGE-VAR model offers the most robust estimates with minor deviations, closely followed by the DSGE model.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
