ABSTRACT

This paper constructs a theoretical model involving supply-side effect, demand-side effect, and security effect produced by military spending to explore the effects of military spending and foreign military threat on employment. This paper proves that the relationship between defense burden and employment is nonlinear (i.e., reverse U shape.). Hence, we find the defense burden of maximizing employment. In addition, we argue that a rise in foreign military threat will be detrimental to the level of output and in turn lead to a reduction in employment. Finally, we show that an increase in the variance of the foreign military spending shocks will raise the level of output and then lead to an increase in employment.

摘要

本文构建了涉及军费支出产生的供给侧效应、需求侧效应和安全效应的理论模型，探讨军费开支和外国军事威胁对就业的影响。本文证明了国防负担与就业之间的关系是非线性的（即倒U形）。因此，我们发现最大化就业的防御负担。此外，我们认为外国军事威胁的增加将不利于产出水平，进而导致就业减少。最后，我们表明，外国军费支出冲击方差的增加将提高产出水平，进而导致就业增加。