Cespic Working Paper 2018/01
Raul Caruso, Antonella Biscione
Abstract: By using a panel of transition economies, which covers the period 1990-2015, this work contributes to the literature on military spending by analyzing its relationship with income inequality. There is a strong theoretical argument that explains the way an increase in military expenditure affects income inequality; the military expenditure diverts public resources from other public interventions which could reduce inequality. Our results confirm this argument, as we found a positive relationship between military expenditure and income inequality.
