@article{ref1,
title="U.S. Military expenditure and the dollar: Another look",
journal="Defence economics",
year="1993",
author="Olszewski, Edward A. and Payne, James E. and Ross, Kevin L.",
volume="4",
number="3",
pages="249-258",
abstract="This paper re-examines the relationship between U.S. defense spending and the dollar-mark exchange rate during the 1960:1 to 1990:4 period. Previous work, under the guise of the “safe haven” argument, finds a cointegrating relationship between real military expenditures, real output and the real dollar-mark exchange rate. Here, we examine the dynamic time series properties of a cointegrated vector autoregression under a more traditional real exchange rate specification. Through various restrictions placed upon the estimated cointegrating vector, we test specific hypotheses about the long-run relationships between the variables. Our results reveal that previous work suggesting that military expenditures may significantly affect the real dollar exchange rate value may be misleading.<p />",
language="",
issn="1043-0717",
doi="10.1080/10430719308404764",
url="http://dx.doi.org/10.1080/10430719308404764"
}