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- W1844865590 abstract "This paper sets up a small open stochastic endogenous growth model to analyze the impact of foreign military threats on the home long-run economic growth rate and welfare. We prove that, in addition to the intertemporal substitution elasticity in consumption, whether the home country is a net creditor or not is also an important factor in determining the growth effect and the welfare effect of foreign military threats. We find that if the home country is a net creditor, the relationship between foreign military threats and the home long-run economic growth rate is positive. On the contrary, if the home country is a net debtor, the effect of foreign military threats on the home long-run economic growth rate is negative." @default.
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- W1844865590 date "2012-07-01" @default.
- W1844865590 modified "2023-09-25" @default.
- W1844865590 title "Military Threats and Growth: A Small Open Stochastic Growth Model" @default.
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