This note responds to the comments by Garbellini (2026) on the treatment of demand shocks in the Input-Output model in Stamegna et al. (2024). We show that the increase in arms expenditure is correctly identified as an investment shock, while increases in public expenditure on environmental...

This study revisits the long-standing debate on the guns-versus-butter phenomenon, that spending on military activity crowds out non-military expenditure. By focusing on Africa, we conjecture the crowding-out effect of military expenditure on health expenditure beyond government health...

This study endeavours to investigate the effect of military expenditure on economic growth in ten major countries of the world, which collectively contributed 75.2 per cent to global military expenditure in 2022. The period of study is 30 years, from 1992 to 2022, determined solely based on the...

This study seeks to answer the following research question: How do defense spending and conflict impact economic growth in Europe, and what role does NATO membership play in shaping these dynamics? Using a panel dataset of 40 European countries from 1999 to 2023, the analysis investigates a...

In the face of wars and a geopolitically challenging environment, military expenditures have once again become political focal points in developed countries. However, the scientific literature remains inconclusive regarding their impact on economic growth. This paper conducts a meticulous...

We study the fiscal consequences of large military buildups. To do so, we assemble the Global Budget Database, a comprehensive dataset of disaggregated central government finances for 20 countries from 1870 to 2022. We identify 114 episodes of military spending booms, in peace and war, and...

• Europe must urgently strengthen its defence capabilities and secure strategic autonomy to avoid vulnerability to external pressures. • The proposal outlines a European Future of Defence Architecture focusing on next generation military technologies and strategic enablers (like AI, cyber,...

Germany is facing a security policy Zeitenwende whose industrial dimension has not yet been sufficiently addressed. The war in Ukraine, rising military threats in Europe, and the long-term underfunding of the German Armed Forces have exposed the limits of existing defence industrial capacity,...

US defence policy is characterised by contradictions that are on display once again in the Trump administration’s latest strategy documents. The reasons for this go far beyond the president’s erratic behaviour. At the core lies the unanswered question of how the United States should deal...

Military expenditure is considered an influential factor in gross domestic product. This study investigates the relationship between military expenditure and gross domestic product in Bangladesh. Time series data, econometric techniques, and some robustness tests are used in this analysis. The...

This study assesses the importance of military expenditure in moderating the role of insecurity dynamics on tourist arrivals or international tourism in 163 countries. It is framed to assess how the future of international tourism can be improved when military expenditure is used as a tool to...

CO2 significantly contributes to greenhouse gas (GHG) emissions. This investigation determines the impact of militarization, economic growth (EG), FDI, renewable energy usage on CO2 emissions in three highly militarized countries of Asia: Pakistan, India, and China (PIC). This research used...

The member states of the European Union are once again arguing about money. More specifically, they are arguing about how much they want to spend on defence, where this money should come from and whether they should spend it jointly. That Europe needs to defend itself better is not in dispute in...

Civil wars often erode state sovereignty, as institutions are replaced or co-opted by armed groups that establish informal governance structures. Among these, rebel taxation emerges as a key tool for financing wartime activities and administering territories. We explore whether rebel taxation...

European security is in danger. Despite some successes, overall progress in strengthening defences has been slow. Europeans still face critical shortfalls in areas such as long-range strike, air defence, intelligence and surveillance. Without more coordination, Europeans will waste much of their...

Europe's fragmented defence procurement markets undermine Europe's security efforts. Larger procurement markets, by contrast, deliver sharper competition, lower prices, and stronger incentives for specialisation and technological progress. Using data from the EU's Tender Electronic Daily (TED),...

Research background: At the NATO Wales Summit in 2014, European allies agreed to spend at least 2% of GDP on defence.1 However, the break-out of the Russo-Ukrainian war increased EU countries efforts to spend more on military capability not only because of solidarity in the alliance, but also as...

We provide the first global, long-run analysis of how governments fund and de-fund military spending. Constructing a panel of 167 countries from 1817 to 2024, we estimate fiscal responses to armaments and disarmaments, including wartime shifts. Deficit spending is the primary financing policy,...

The aim of this study is to analyze the effects of terrorism on gender inequality in politics for a panel of 180 countries over the period 2000-2020. Using generalized method of moments in a system, the results obtained reveal that terrorism reduces women's political representation, thereby...

In 2024, total defence expenditure by the 27 EU Member States reached €343 billion, marking a 19% increase from 2023, bringing defence expenditure to 1.9% of GDP. Estimated data suggests that Member States may reach beyond the 2% NATO guideline in 2025, to €392 billion (current prices,...

In 2024, total defence expenditure by the 27 EU Member States reached €343 billion, marking a 19% increase from 2023, bringing defence expenditure to 1.9% of GDP. Estimated data suggests that Member States may reach beyond the 2% NATO guideline in 2025, to €392 billion (current prices,...

National defence is a quintessential public good which generates welfare but does not have a market price to be used for its valuation. This study uses non-market valuation, namely a discrete choice experiment, to enhance the understanding of how individuals' perceptions of threat influence...

Using a short- and long-term macroeconomic forecasts, we estimate the cost of the Russian full-scale invasion of Ukraine for countries in Eastern Europe, Caucasus, and Central Asia. Shortly after the Russian attack, the projected cost (cumulative over six years) stood at $2.44 trillion for the...