THE IMPACT OF ANTI-TERRORISM EXPENDITURE ON ECONOMIC GROWTH AND WELFARE
Article first published online: 4 APR 2011
© 2011 The Authors. Bulletin of Economic Research © 2011 Blackwell Publishing Ltd and the Board of Trustees of the Bulletin of Economic Research.
Bulletin of Economic Research
Volume 64, Issue 1, pages 1–7, January 2012
How to Cite
Yang, C.-L., Lin, H.-P. and Chen, C.-Y. (2012), THE IMPACT OF ANTI-TERRORISM EXPENDITURE ON ECONOMIC GROWTH AND WELFARE. Bulletin of Economic Research, 64: 1–7. doi: 10.1111/j.1467-8586.2010.00377.x
- Issue published online: 12 DEC 2011
- Article first published online: 4 APR 2011
- economic growth;
- government spending;
- social welfare
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.