A Comparison of the Macroeconomic Effects of Increased Defence Spending in Poland and Germany
The aim of the article is to quantify and compare the macroeconomic effects of defence spending in the Polish and German economies. Estimating these effects is of particular importance in the context of the substantial increase in defence expenditures in Poland and Germany resulting from the war in...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Lodz University Press
2023-12-01
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| Series: | Comparative Economic Research |
| Subjects: | |
| Online Access: | https://czasopisma.uni.lodz.pl/CER/article/view/21416 |
| _version_ | 1797372826419724288 |
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| author | Piotr Krajewski Katarzyna Piłat |
| author_facet | Piotr Krajewski Katarzyna Piłat |
| author_sort | Piotr Krajewski |
| collection | DOAJ |
| description | The aim of the article is to quantify and compare the macroeconomic effects of defence spending in the Polish and German economies. Estimating these effects is of particular importance in the context of the substantial increase in defence expenditures in Poland and Germany resulting from the war in Ukraine. The research is based on a dynamic stochastic general equilibrium model that takes into account both demand‑side and supply‑side mechanisms. The impulse response functions calculated based on the models estimated for the two economies show that the impact of defence spending on GDP is much stronger in Poland than in Germany. Furthermore, the empirical results indicate that in the Polish economy, defence spending also stimulates labour and consumption to a greater extent than in the German economy. |
| first_indexed | 2024-03-08T18:41:27Z |
| format | Article |
| id | doaj.art-faf445e20b0945a68a1ff697d01248c6 |
| institution | Directory Open Access Journal |
| issn | 1508-2008 2082-6737 |
| language | English |
| last_indexed | 2024-03-08T18:41:27Z |
| publishDate | 2023-12-01 |
| publisher | Lodz University Press |
| record_format | Article |
| series | Comparative Economic Research |
| spelling | doaj.art-faf445e20b0945a68a1ff697d01248c62023-12-29T07:29:09ZengLodz University PressComparative Economic Research1508-20082082-67372023-12-01264274410.18778/1508-2008.26.2921325A Comparison of the Macroeconomic Effects of Increased Defence Spending in Poland and GermanyPiotr Krajewski0https://orcid.org/0000-0002-5377-9578Katarzyna Piłat1University of Lodz, Faculty of Economics and Sociology, Department of MacroeconomicsUniversity of Lodz, Faculty of Economics and Sociology, Department of Economic MechanismsThe aim of the article is to quantify and compare the macroeconomic effects of defence spending in the Polish and German economies. Estimating these effects is of particular importance in the context of the substantial increase in defence expenditures in Poland and Germany resulting from the war in Ukraine. The research is based on a dynamic stochastic general equilibrium model that takes into account both demand‑side and supply‑side mechanisms. The impulse response functions calculated based on the models estimated for the two economies show that the impact of defence spending on GDP is much stronger in Poland than in Germany. Furthermore, the empirical results indicate that in the Polish economy, defence spending also stimulates labour and consumption to a greater extent than in the German economy.https://czasopisma.uni.lodz.pl/CER/article/view/21416defence spendinggovernment spendingfiscal policy |
| spellingShingle | Piotr Krajewski Katarzyna Piłat A Comparison of the Macroeconomic Effects of Increased Defence Spending in Poland and Germany Comparative Economic Research defence spending government spending fiscal policy |
| title | A Comparison of the Macroeconomic Effects of Increased Defence Spending in Poland and Germany |
| title_full | A Comparison of the Macroeconomic Effects of Increased Defence Spending in Poland and Germany |
| title_fullStr | A Comparison of the Macroeconomic Effects of Increased Defence Spending in Poland and Germany |
| title_full_unstemmed | A Comparison of the Macroeconomic Effects of Increased Defence Spending in Poland and Germany |
| title_short | A Comparison of the Macroeconomic Effects of Increased Defence Spending in Poland and Germany |
| title_sort | comparison of the macroeconomic effects of increased defence spending in poland and germany |
| topic | defence spending government spending fiscal policy |
| url | https://czasopisma.uni.lodz.pl/CER/article/view/21416 |
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