Defense Budget Growth and Inflation
A Wavelet-Based Study of the U.S. and Britain
Bibliographic Data
| ID | 7353261 |
|---|---|
| Authors | Yu Wang (0009-0005-4222-2626, Xi’an Jiaotong-Liverpool University, corresponding author) |
| Year | 2022 |
| Volume | 21 |
| Issue | 2 |
| Pages | 260-284 |
| Publication date | 2022-01-09 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Political Studies Review (JOURNAL) |
| Journal identifiers | ISSN: 1478-9299 • E-ISSN: 1478-9302 |
| Publisher | SAGE Publishing (PUBLISHER • US) |
| DOI | 10.1177/14789299211068407 |
| OpenAlex | W4206454379 |
| Language | EN |
| Citations received | 2 |
| References cited | 39 |
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
Bivariate analysis · Context (archaeology · Econometrics · Economics · Inflation (cosmology · Keynesian economics · Macroeconomics · Perspective (graphical · Statistics · Wavelet · Computer Science · Defense, Military, and Policy Studies · Economic Growth and Productivity · Fiscal Policy and Economic Growth · History · Mathematics
A monetary history of the United States, 1867-1960
Wavelet Applications in Economics and Finance
The nationalization of electoral cycles in the United States
The Role of War in Modern Inflation
The Impact of Defense Expenditures on the Domestic American Economy 1946-1972
The Relationship between Defense Spending and Economic Growth in the United States
The Relationship between Defense Spending and Inflation
The Political and Economic Sources of Inflation in the American Military Budget
A Causal Analysis of Defense Spending and Economic Growth
War, Inflation, and the Kondratieff Long Wave
Who Pays for National Defense? Financing Defense Programs in the United States, 1947–2007
Military Expenditure and Growth in Less Developed Countries
The Illusion of Cycles in International Relations
Guns versus Butter
Cycles in Politics
The Political Economy of US Military Spending
Inflation and American Power
| Unique citing works | 2 |
|---|---|
| Citations per year | 0,67 |
| Citation span | 2023 - 2025 (3) |
| Citation velocity | recent |
| Highly cited | No |
| Citation types | Neutral: 2 |