Guns, Economic Growth and Education During the Second Half of the Twentieth Century: Was Spain Different?

25 Pages Posted: 6 Jun 2014

See all articles by Jose Jurado-Sanchez

Jose Jurado-Sanchez

Universidad Complutense de Madrid (UCM)

Juan-Angel Jiménez-Martin

Complutense University of Madrid

Date Written: June 5, 2014

Abstract

In the past decades, numerous studies have been conducted on the trade-off between guns and butter, namely defense versus social sector expenditure. The aim of this research is identifying whether indeed defense spending crowded out investment and other social expenditures as health and education. Previous research does not yield strong and unambiguous evidence of neither positive nor negative effects of military expenditure on social spending. It is striking that the guns versus butter dilemma has not been extensively studied for Spain. Using Mintz and Huang (1991) strategy applied to the US, we test if the government expenditure in defense in Spain during the last part of the Franco’s dictatorship and the first years of the transition and democracy, contributed positively or negatively to education spending. Results show a negative trade-off for the Franco’s regimen and an ambiguous effect for the last part of the sample.

Keywords: guns versus butter dilemma, military spending, economic growth and social expenditures, education spending

JEL Classification: H51, H52, H53, H56, N40, N44

Suggested Citation

Jurado-Sanchez, Jose and Jiménez-Martin, Juan-Angel, Guns, Economic Growth and Education During the Second Half of the Twentieth Century: Was Spain Different? (June 5, 2014). Available at SSRN: https://ssrn.com/abstract=2446440 or http://dx.doi.org/10.2139/ssrn.2446440

Jose Jurado-Sanchez

Universidad Complutense de Madrid (UCM) ( email )

Campus de Somosaguas
Pozuelo de Alarcón (Madrid), Madrid 28223
Spain
34913942346 (Phone)

HOME PAGE: http://www.ucm.es/histecon1/paginas

Juan-Angel Jiménez-Martin (Contact Author)

Complutense University of Madrid ( email )

Complutense University of Madrid
Campus de somosaguas
Pozuelo de Alarcon, Madrid 28223
Spain
+34 91 3942355 (Phone)

HOME PAGE: http://www.ucm.es/fundamentos-analisis-economico2/jajm

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