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Models of military expenditure
Author(s) -
Smith R. P.
Publication year - 1989
Publication title -
journal of applied econometrics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.878
H-Index - 99
eISSN - 1099-1255
pISSN - 0883-7252
DOI - 10.1002/jae.3950040404
Subject(s) - variety (cybernetics) , model selection , selection (genetic algorithm) , econometrics , range (aeronautics) , economics , computer science , operations research , mathematics , engineering , artificial intelligence , aerospace engineering
A brief review of the extensive empirical literature devoted to explaining levels of military expenditure indicates a wide variety of unreconciled results. However, comparing the alternative models is not straightforward. This paper uses British post‐war military expenditures to illustrate some of the methodological issues involved in model comparison, evaluation and selection. Starting from two published models for the UK, a systematic specification search leads to a new model, which dominates alternative specifications, passes a wide range of misspecification tests, and also fits well to French data.