Beetsma, Roel; Cukierman, Alex; Giuliodori, Massimo - C.E.P.R. Discussion Papers - 2005
We provide empirical evidence on two, major war-related, regularities of U.S. fiscal policy. First, while during and 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...