The effects of defense spending on economic performance and, in particular, on economic growth have been studied extensively in the literature. The empirical findings have been ambiguous so far, partly reflecting the econometric difficulties involved in the estimation of this relationship. The...

We study the behavior of defense spending in Switzerland over 1975-2001. Our main interest is in determining how neutrality in international affairs (non-membership in military alliances) affects defense spending. We find that neutrality is associated with a perception of lower levels of...

We study the behavior of defense spending in Switzerland in 1975-2001. Our main interest is in determining how neutrality in international affairs (non-membership in military alliances) affects defense spending. We find that neutrality is associated with a perception of lower levels of external...