Re: SV: [OPE] Studying unproductive labor: CEPR report

From: Dave Zachariah (
Date: Sat Mar 01 2008 - 06:02:18 EST

on 2008-02-27 19:38 Martin Kragh wrote:
> There is no clear cut way to say whether or not military spending might act as a positive multiplier or not in the short vs. the long run. It depends on the initial circumstances, and the conditions in which the spending develops.

Nitzan and Bichler provide some evidence on the relation between 
military spending and GDP growth in the US:

Regarding innovations and their applications, they are a result of a 
process that is inherently unpredictable. It is impossible to say what 
products and technologies would have existed without military spending. 
However, it is quite clear that if a country's best engineers were 
engaged in modernising means of production rather than refining means of 
destruction, improvements in productivity and the material living 
standards would be greater.

//Dave Z
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