Logo
Munich Personal RePEc Archive

Defense Expenditure and Economic Growth under External Predation

Liu, Tao-Xiong and Hu, An-Gang and Zhou, Bi-Hua (2011): Defense Expenditure and Economic Growth under External Predation.

[img]
Preview
PDF
MPRA_paper_29286.pdf

Download (168kB) | Preview

Abstract

This paper develops a growth model of a country under a Hobbesian environment with international conflicts where national defense is the only way to prevent external predation. The long run growth path is determined by the equilibrium of a dynamic game with three players, the external predator, the government and the family. The equilibrium growth path has three phases, submissive equilibrium, tolerant equilibrium and full-protected equilibrium. Different defense strategies result in different growth prospects and sustainable growth will endogenously induce adjustment of defense strategies.

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.