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The relationship between economic growth and military expenditure has been the subject of a large literature in defence economics. This study analyses the influence of military expenditures on economic growth in a global perspective for the time period 2000-2010 taking spatial dimension into account. The augmented Solow model is employed to investigate the defence-growth nexus using the cross-sectional data relating to 128 countries. Following a traditional regression analysis, spatial variations in the relationships are examined utilizing different spatial econometric specifications estimated by maximum likelihood. The regressions are compared with each other via likelihood ratio tests, and the spatial Durbin model is found to be the most appropriate one suggesting that the typical least-squares model is misspecified. Empirical evidence indicates that military expenditure has a positive effect on economic growth with a significant spatial dependence for the time period under consideration.

Using three subsamples from the 2010 National Survey of Veterans (Westat 2010), this study explores health spillovers—the effects of the experience of one person on the health of another—from service personnel to their spouses. Regression models point to broad and substantial spillovers, occurring over multiple stages of a military career. The spouses of active duty personnel report worse health relative to those living with a veteran, and this difference in health is comparable to the well-established effect of widowhood on health. In addition, the health of military spouses declines when their spouses suffer from service-connected disabilities. There is no evidence that the widowhood effect is larger when the death is service-connected, nor is there evidence that caring for a disabled spouse is more detrimental when it happens at younger ages, a common situation among military spouses. Nonetheless, the health of military spouses is impacted by an assortment of spillovers related indirectly and directly to military service, and occurring both among those married to active personnel and those married to veterans.

Family members tend to have similar labor market outcomes, but measuring the contribution of behavioral spillovers is difficult. To identify spillovers between brothers, we exploit Denmark's largest random assignment of young men to 8 months of military service where service status of brothers is correlated but draft lottery numbers are not. We find average spillovers of elder brother service on younger brother service of 7 percent, and as high as 55 percent for closely spaced brothers without sisters. Elder brother military service affects his own occupational choice and his younger brother's service through private information, thereby encouraging volunteering.

Using the latest spatial econometric techniques and data pertaining to 144 countries over the period 1993-2007, this article tests and compares four frequently used spatial econometric models and eight matrices describing the mutual relationships among the countries, all within a common framework, which helps clarify the impact of neighboring countries on military expenditures. Furthermore, it utilizes two different data sources. Due to this setup, it provides one of the most thorough spatial analyses of military expenditures so far. Furthermore, it confirms but also challenges the results of several previous studies. Military spending measured as a ratio of GDP in one country indeed depends primarily on the spending of other countries, but in a limited number of cases, it also depends on control variables that can be observed in other countries, among which are the level of GDP, the occurrence of international wars, and the political regime. The most likely specification of the matrix describing the relationships among countries is the first-order binary contiguity matrix based on land or maritime borders, extended to include two-sided relationships among the five countries that are permanent members of the UN Security Council and one-sided relationships to all other countries. Finally, cross-sectional approaches are rejected in favor of dynamic spatial panel data approaches due to their controls for habit persistence, country, and time-period fixed effects.

Using the latest spatial econometric techniques and data pertaining to 144 countries over the period 1993-2007, this article tests and compares four frequently used spatial econometric models and eight matrices describing the mutual relationships among the countries, all within a common framework, which helps clarify the impact of neighboring countries on military expenditures. Furthermore, it utilizes two different data sources. Due to this setup, it provides one of the most thorough spatial analyses of military expenditures so far. Furthermore, it confirms but also challenges the results of several previous studies. Military spending measured as a ratio of GDP in one country indeed depends primarily on the spending of other countries, but in a limited number of cases, it also depends on control variables that can be observed in other countries, among which are the level of GDP, the occurrence of international wars, and the political regime. The most likely specification of the matrix describing the relationships among countries is the first-order binary contiguity matrix based on land or maritime borders, extended to include two-sided relationships among the five countries that are permanent members of the UN Security Council and one-sided relationships to all other countries. Finally, cross-sectional approaches are rejected in favor of dynamic spatial panel data approaches due to their controls for habit persistence, country, and time-period fixed effects.

Using the latest spatial econometric techniques and data pertaining to 144 countries over the period 1993–2007, this article tests and compares four frequently used spatial econometric models and eight matrices describing the mutual relationships among the countries, all within a common framework, which helps clarify the impact of neighboring countries on military expenditures. Furthermore, it utilizes two different data sources. Due to this setup, it provides one of the most thorough spatial analyses of military expenditures so far. Furthermore, it confirms but also challenges the results of several previous studies. Military spending measured as a ratio of GDP in one country indeed depends primarily on the spending of other countries, but in a limited number of cases, it also depends on control variables that can be observed in other countries, among which are the level of GDP, the occurrence of international wars, and the political regime. The most likely specification of the matrix describing the relationships among countries is the first-order binary contiguity matrix based on land or maritime borders, extended to include two-sided relationships among the five countries that are permanent members of the UN Security Council and one-sided relationships to all other countries. Finally, cross-sectional approaches are rejected in favor of dynamic spatial panel data approaches due to their controls for habit persistence, country, and time-period fixed effects. © 2017, © The Author(s) 2017.

Using the latest spatial econometric techniques and data pertaining to 144 countries over the period 1993-2007, this article tests and compares four frequently used spatial econometric models and eight matrices describing the mutual relationships among the countries, all within a common framework, which helps clarify the impact of neighboring countries on military expenditures. Furthermore, it utilizes two different data sources. Due to this setup, it provides one of the most thorough spatial analyses of military expenditures so far. Furthermore, it confirms but also challenges the results of several previous studies. Military spending measured as a ratio of GDP in one country indeed depends primarily on the spending of other countries, but in a limited number of cases, it also depends on control variables that can be observed in other countries, among which are the level of GDP, the occurrence of international wars, and the political regime. The most likely specification of the matrix describing the relationships among countries is the first-order binary contiguity matrix based on land or maritime borders, extended to include two-sided relationships among the five countries that are permanent members of the UN Security Council and one-sided relationships to all other countries. Finally, cross-sectional approaches are rejected in favor of dynamic spatial panel data approaches due to their controls for habit persistence, country, and time-period fixed effects.