Abstract
Changes in military expenditure as a share of gross domestic product (MIL/GDP) and of total expenditure (MIL/EX) during IMF-supported programs are examined for two subsamples, broadly divided according to fiscal tightening and fiscal accommodation. Under fiscal tightening, the evidence suggests that MIL/GDP decreases during Fund-supported programs, but that MIL/EX increases, revealing resilience to budgetary adjustments. Under fiscal accommodation, as total government expenditure tends to increase, so does military expenditure; the ratio MIL/EX declines, however, because fewer additional resources are allocated to the military.
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De Masi, P., Lorie, H. How Resilient Are Military Expenditures?. IMF Econ Rev 36, 130–165 (1989). https://doi.org/10.2307/3867172
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DOI: https://doi.org/10.2307/3867172