We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Defense Budget Growth and Inflation: A Wavelet-Based Study of the U.S. and Britain.
- Authors
Wang, Yu
- Abstract
Despite the extensive theoretical connections between defense budget growth and inflation, empirical findings based on traditional time-domain methods have been inconclusive. This study reexamines the issue from a time–frequency perspective. Applying continuous wavelet analysis to the U.S. and Britain, it shows empirical evidence in support of positive bilateral effects in both cases. In the bivariate context, U.S. defense budget growth promoted inflation at 2- to 4-year cycles in the 1840s and at 8- to 24-year cycles between 1825 and 1940. Conversely, inflation accelerated defense spending growth at 5- to 7-year cycles in the 1830s and at 25- to 64-year cycles between 1825 and 1940. Similarly, British defense budget growth spurred inflation at 8- to 48-year cycles between 1890 and 1940 and at 50- to 65-year cycles between 1790 and 1860. Inflation fueled the growth of defense spending at 7- to 20-year cycles between 1840 and 1870, in the 1940s, and in the 1980s. Preliminary results from multivariate analyses are also supportive, though there is a need for further research that is contingent on advancements in the wavelet method in the direction of simulation-based significance tests.
- Subjects
MILITARY budgets; PRICE inflation; BIVARIATE analysis; TIME series analysis; SIMULATION methods & models
- Publication
Political Studies Review, 2023, Vol 21, Issue 2, p260
- ISSN
1478-9299
- Publication type
Academic Journal
- DOI
10.1177/14789299211068407