Beetsma, Roel; Cukierman, Alex; Giuliodori, Massimo - C.E.P.R. Discussion Papers - 2005
around World War I there is a positive correlation between defence spending and civil non-defense spending, this correlation … becomes negative during World War II. This may be explained by a combination of complementarities between defence and civilian …’s size. Second, during and around World War II there are, war-related, ratchets in transfers, veteran spending, taxes and …