THE IMPACT OF ANTI‐TERRORISM EXPENDITURE ON ECONOMIC GROWTH AND WELFARE |
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| Authors: | Cheng‐Lang Yang Hung‐Pin Lin Chien‐Yuan Chen |
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| Affiliation: | 1. Department of Managerial Economics, Nanhua University, Taiwan;2. Department of International Business and Trade, Shu‐Te University, Taiwan;3. Department of Economics, Fengchia University, Taiwan |
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| Abstract: | This paper examines the effects of increasing anti‐terrorism expenditure on economic growth rate and social welfare. It is shown that: (i) spending the least amount possible on anti‐terrorism expenditure will lead to a maximum economic growth rate; and (ii) to achieve maximum social welfare, the government should allocate its budget to anti‐terrorism expenditure. The results shed light on why the US government has chosen to uphold and pursue its anti‐terrorism policies in recent years to present day. |
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| Keywords: | anti‐terrorism economic growth government spending social welfare H56 O40 O41 |
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