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The Impact of US Military Spending on Public Debt in Europe (1992–2013): A Note

Raul Caruso and Marco Di Domizio


This paper investigates the relationship between the US military spending and public debt in a panel of European countries in the period 1992–2013. Under the established evidence of the interdependence between US and European military spending, we exploited a dynamic panel estimation. Findings show that the debt of European countries is: (1) positively associated with US military spending; (2) negatively associated with average military burden of other European countries.

Corresponding author: Raul Caruso, Catholic University of the Sacred Heart, Institute of Economic Policy, via necchi 5 Milan 20123, Italy, E-mail: ;


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Published Online: 2015-10-30
Published in Print: 2015-12-1

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