Abstract
With the end of the ‘Cold War’ and attendant fragmentation of the former Soviet Union, Soviet military influence no longer poses a grave threat to international security. The destruction of Iraq’s military capabilities and the opening of the Israeli-Arab dialogue may also have served to reduce the potential for large-scale conflict in the Middle East. The confluence of these remarkable changes suggests that there may now be considerable scope for reduction in military expenditures in the USA especially, as well as in other major countries. It is in this light that we use the computational general equilibrium (CGE) Michigan Model of World Production and Trade to analyse the impact of a 25 per cent unilateral reduction in US military spending.2
Keywords
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.
Financial assistance was provided in part by a grant from the Ford Foundation in support of a programme of research in trade policy in the Institute of Public Policy Studies at the University of Michigan. We wish to thank Jon D. Haveman for computational assistance and Judith Jackson for typing and editorial assistance.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Deardorff, A.V. and R.M. Stern (1986), The Michigan Model of World Production and Trade: Theory and Applications (Cambridge, Mass.: MIT Press).
— (1990), Computational Analysis of Global Trading Arrangements (Ann Arbor, Mich.: University of Michigan Press).
Fox, A.K. and R.M. Stern (1992), ‘Effects of Reductions in NATO Military Expenditures on U.S. Employment by Sector/Occupation/Region’ The World Economy, vol. 16, pp. 193–211.
Haveman, J.D., A.V. Deardorff and R.M. Stern (1992), ‘Some Economic Effects of Unilateral and Multilateral Reductions in Military Expenditures in the Major Industrialized and Developing Countries’, Conflict Management and Peace Science, vol. 12, pp. 47–78.
Steuerle, E.C. and S. Wiener (1990), ‘Spending the Peace Dividend: Lessons from History’, Urban Institute Policy Paper.
US ACDA (1990), World Military Expenditures and Arms Transfers 1989, (Washington, DC: US Government Printing Office).
Editor information
Editors and Affiliations
Copyright information
© 1994 Manas Chatterji, Henk Jager and Annemarie Rima
About this chapter
Cite this chapter
Fox, A.K., Stern, R.M. (1994). A Computational Analysis of the Effects of Reductions in US Military Expenditures. In: Chatterji, M., Jager, H., Rima, A. (eds) The Economics of International Security. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-23695-4_8
Download citation
DOI: https://doi.org/10.1007/978-1-349-23695-4_8
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-23697-8
Online ISBN: 978-1-349-23695-4
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)