Military in politics and budgetary allocations

Abstract

This paper investigates the effect of military involvement in politics on budgetary allocations for defence. We employ a variety of econometric models, including pooled OLS and panel data with fixed effects and control for other known determinants of military spending. To deal with endogeneity issues, we also use an IV methodology and find that a higher degree of military involvement in policy-making increases the probability that the military obtain a larger share of output.