Guns Versus Butter: A Disaggregated Analysis

Prior studies of the guns-versus-butter trade-off have focused on total military expenditures and subcomponents of welfare spending (education, health, and housing). I extend the analysis to include the major subcomponents of the defense budget. The results are consistent with Clayton's; Domke, Eichenberg, and Kelleher's; and Russett's findings of a lack of defense-welfare trade-off in the 1947–80 era but reveal very specific trade-offs during the Reagan years.