War and the Growth of Government

24 Pages Posted: 15 Aug 2014 Last revised: 29 Jan 2015

See all articles by Colin O'Reilly

Colin O'Reilly

Creighton University

Benjamin Powell

Texas Tech University - Free Market Institute; Texas Tech University - Rawls College of Business

Date Written: January 16, 2015

Abstract

This paper empirically examines how wars impact the size and scope of government using a panel of all wars from 1960 to 2010 to test the hypothesis that wars are crises that cause an expansion of government in the subsequent period. The results largely support view that wars permanently expand the size of government, although we find no evidence of a permanent increase in the scope of government regulation. We find results are stronger in ten year periods than five year periods.

Keywords: War, Economic Freedom, Size of Government, Institutional Change

JEL Classification: H11, H12, N40, P48

Suggested Citation

O'Reilly, Colin and Powell, Benjamin, War and the Growth of Government (January 16, 2015). Available at SSRN: https://ssrn.com/abstract=2480063 or http://dx.doi.org/10.2139/ssrn.2480063

Colin O'Reilly (Contact Author)

Creighton University ( email )

2500 California St.
Omaha, NE 68178
United States

Benjamin Powell

Texas Tech University - Free Market Institute ( email )

Box 45059
Lubbock, TX 79409-5059
United States
806.742.7138 (Phone)
806.742.1854 (Fax)

HOME PAGE: http://www.fmi.ttu.edu

Texas Tech University - Rawls College of Business ( email )

Lubbock, TX 79409
United States
806.834.3097 (Phone)
806.742.1854 (Fax)

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