The Effect of Military Service System Changes to Military Expenditure Demand

• Main Authors: Jyun-wei Lai, 賴俊瑋
• Other Authors: none
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/17477731387082190074

碩士 === 逢甲大學 === 財稅所 === 98 === Smith(1980) have first developed a military demand model using New-Classical method. This model has been applied in many military demand researches. These researches stretched Smith(1980)’s model by putting in different variables and using different econometric approaches. This paper follow Smith(1980)’s model to examine if the military service changes resulting in structural breaks to military demand. This paper firstly used Lee and Strazicich(2003) two breaks unit root test to test if there are endogenous structural breaks and if they happened with military service changes. And then we used ARDL model to find out what is the effects of military service changes to military demand. In empirical results we showed that except for cold war is the most important reason affect military demand, military service system changes also correspond to breaks that is found in Lee and Strazicich’s (2003) two breaks unit root test. In ARDL model we found the long run coefficient is very different before and after military service change.