The Impact of Military Spending Cutbacks on Economic Activity in an Incentive-Wage Two-Sector Aggregative Economy
We examine the theoretical outcomes of disarmament on economic activity in a two‐sector model of endogenous equilibrium unemployment rate. Three main shocks are analyzed: Exogenous cutbacks in military spending on the capital good and employment, and a reduction in public sector debt. The first shoc...
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| Format: | text |
| Language: | English |
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Institutional Knowledge at Singapore Management University
1996
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| Online Access: | https://ink.library.smu.edu.sg/soe_research/437 |
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| Institution: | Singapore Management University |
| Language: | English |