Slowdown in Soviet defense expenditures: variations of a suggested model
Fuzy, Michael III
Gonzalez, Rudolfo S.
Henderson, David R.
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This thesis examined existing models that attempt to explain the decrease in the growth of Soviet defense expenditures. Two new models were also developed. The first used the mean of a high and low estimated dependent variable in the existing models, and the second added a different independent variable to the models. Likelihood rations, chi-squared tests, and Chow tests were used in conjunction with the regression models to show a mid-70s change in Soviet leaders' attitudes toward defense needs. The major conclusion of this study was that there was a definite break in the regressions that indicated a change in Soviet defense policy. When all the variables were used, the models exhibited a post-break increase in the growth of Soviet defense expenditures instead of the expected decrease.
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