A human capital model of the defense-growth relationship

Publication date: Available online 16 May 2019Source: The Social Science JournalAuthor(s): Bruce D. McDonaldAbstractThis paper develops a model to illustrate how human capital investments made by the defense sector impact economic performance. Emphasizing the on-the-job accumulation of human capital during military service, the model demonstrates the effect of investments on the accumulation of human capital and output of the defense sector, whose military good has a spillover effect on general production. Calibrated with data from the United States for the years 1949 to 2014, investments are shown to positively impact both the accumulation of human capital and economic growth. The measured benefits are seen to be lower than investments made into formal education.
Source: The Social Science Journal - Category: Psychiatry & Psychology Source Type: research