Naval Postgraduate School
The effects of Department of Defense and federal spending upon state economic growth
effectsofdepartm00anas.pdf (7.341Mb)Abstract
This thesis evaluates the impact of spending by the
Department of Defense and the Federal Government upon the
economic growth of the states in which funds are expended.
A pooled cross-section and time-series analysis is performed
on a data base describing the period 1976-1985 and including
the forty-eight contiguous states. Personal income is used
as a proxy to measure economic growth. The econometric
models are estimated using three separate regression
methodologies. Consistent parameter estimates permit the
author to conclude that Defense Investment spending is
highly associated with economic growth. Defense Expense
spending is less highly associated with growth. Federal
spending other than for defense or intergovernmental aid to
state and local governments exhibits an inconclusive
relationship with economic growth.
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