@article{ref1,
title="The impact of military spending cutbacks on economic activity in an incentive-wage two-sector aggregative economy",
journal="Defence and peace economics",
year="1996",
author="Hoon, Hian Teck",
volume="7",
number="2",
pages="95-114",
abstract="We examine the theoretical outcomes of disarmament on economic activity in a two-sector model of endogenous equilibrium unemployment rate. Three main shocks are analyzed: Exogenous cutbacks in military spending on the capital good and employment, and a reduction in public sector debt. The first shock is contractionary for equilibrium employment if the capital-goods producing sector is relatively labour-intensive but expansionary under the alternative factor intensity assumption. The second shock is contractionary for employment under either relative factor intensity assumption. If Ricardian equivalence fails, a reduction in public sector debt is likely to expand long-term employment (JEL E24).<p />",
language="",
issn="1024-2694",
doi="10.1080/10430719608404845",
url="http://dx.doi.org/10.1080/10430719608404845"
}