Author: E. Athanassiou, E. Kollias, E. C. Nikolaidou, S. Zografakis
Publisher/Publication: Palgrave Macmillan
DOI/ISBN: 978-0-230-50125-6
Abstract: In this paper the authors explore why Greece did not see a reduction of military expenditures and defense budgets with the end of the Cold War, as was the case with its NATO peers. Using a Computable General Equilibrium model, they estimate through simulations the effects on the Greek economy, had reductions in current defense spending been equal to the NATO average. The results from the CGE estimations suggest that a shift of expenditure from defense into non-defense public spending would have had an appreciable beneficial impact. Part of the econometric school of study of the post-1945 Greek-Turkish military expenditure and possible arms racing.