Persistency of military spending and fiscal policy responses to Covid-19

Abstract

Using a relatively large time-varying cross-country panel dataset of fiscal policy responses to the Covid-19 pandemic, this paper examines the relationship between military spending persistency and the size of the fiscal stimulus packages. The results suggest that countries with more persistent military spending have had smaller fiscal-stimulus packages during the Covid-19 pandemic. © 2022 Informa UK Limited, trading as Taylor & Francis Group.