This article studies the impact on aggregate economic activity of increases in defense purchases which are unrelated to other developments in the economy. The authors use empirical evidence to evaluate the predictions of several prominent models.

Since the end of the Cold War, the world remains a dangerous place with new threats: regional conflicts, transnational terrorist networks, rogue states, and weapons of mass destruction (i.e., chemical, biological, radiological, and nuclear). The second volume of the Handbook of Defense Economics...

Oshkosh Scholar, Volume 2, 2007, p. 19-27.