Modelling the demand for national security expenditure: a note

In the past, national security for the majority of countries was almost exclusively associated with an external military threat emanating from a rival state(s). This was reflected in the standard models for the demand for military expenditure. The emergence of new security challenges such as terrorism, transnational crime networks, failed and rogue states, has profoundly affected the international security environment and the concept of national security. This note develops a model for the demand for national security expenditure adopting a broader, more inclusive definition of national security and includes concomitant budgetary outlets to meet the new security challenges.     

A PANEL DATA ANALYSIS OF THE NEXUS BETWEEN DEFENCE SPENDING AND GROWTH IN THE EUROPEAN UNION: A REPLY

Hatzinikolaou raises a number of issues related mainly to the econometrics of our paper. These issues are categorized according to the three stages of econometric analysis: specification, estimation, and diagnostic checking. We categorize our reply to his comments accordingly.     

Domestic political and external security determinants of the demand for greek military expenditure

By European Union and NATO standards, Greece consistently allocates substantial human and material resources to defence. The Greek defence burden (i.e. military expenditure as a share of GDP) has invariably been appreciably higher than the EU and NATO averages. The paper applies an autoregressive distributed lag model (ARDL) to present cointegrated estimates of the demand function for Greek military expenditure, in which domestic political factors and external security determinants are incorporated. Our empirical findings suggest that Greek defence spending over the period 1960-1998 has been influenced by both external security concerns, namely Turkey, as well as changes in the domestic political scene.