Unfamiliar consequences of military expenditures

This chapter focuses on detrimental impact of military expenditures on economic growth and development. Evidently there are different channels through which the detrimental impact of military expenditures on economic development takes shape even in ‘times of peace’. In particular the chapter explains the impact of military expenditures on three channels: (1) income inequality; (2) loss of productivity; (3) increase in public debt. For each argument, firstly the theoretical idea is expounded and eventually some recent empirical evidence is borrowed from the literature in order to show whether or not the mentioned theoretical ideas are empirically validated. Finally the evidence produced is discussed within the domain of peace economics.