How Butter Beats the Guns?

Yanovskiy Moshe, Zatcovetsky Ilia "How Butter beats the Guns" Defence & Strategy, 2017 Volume 17, Number 1 (June 2017) pp.141-154 doi 10.3849/1802-7199.17.2017.01.141-154

14 Pages Posted: 16 Nov 2014 Last revised: 22 Jul 2017

See all articles by Konstantin Yanovskiy

Konstantin Yanovskiy

Gaidar Institute for Economic Policy

Ilia Zatcovetsky

Samuel Neaman Institute for Advanced Studies in Science and Technology

Date Written: June 15, 2017

Abstract

Decreasing share of Defence in total Government expenditures reflects fundamental choices about state functions. The main hypotheses of the research is: decreasing priority of military spending could cause lower quality of Defence.

The case study shows, how “punishment for military success” strategy undermines incentives for army officers. Historical data (military spending and rise of new military justice) supports main hypotheses.

Keywords: Budget Spending structure, pure public goods, mixed public goods, universal

JEL Classification: D72, D74, H11, H41, N40

Suggested Citation

Yanovskiy, Konstantin and Zatcovetsky, Ilia, How Butter Beats the Guns? (June 15, 2017). Yanovskiy Moshe, Zatcovetsky Ilia "How Butter beats the Guns" Defence & Strategy, 2017 Volume 17, Number 1 (June 2017) pp.141-154 doi 10.3849/1802-7199.17.2017.01.141-154. Available at SSRN: https://ssrn.com/abstract=2523605 or http://dx.doi.org/10.2139/ssrn.2523605

Konstantin Yanovskiy (Contact Author)

Gaidar Institute for Economic Policy ( email )

Gazetny pereulok, 3-5
Moscow, 125993
Russia

Ilia Zatcovetsky

Samuel Neaman Institute for Advanced Studies in Science and Technology ( email )

Technion, Haifa 32000
Israel

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