TY  - JOUR
AU  - Hooker,Mark
AU  - Knetter,Michael
TI  - Unemployment Effects of Military Spending: Evidence from a Panel of States
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 4889
PY  - 1994
Y2  - October 1994
UR  - http://www.nber.org/papers/w4889
L1  - http://www.nber.org/papers/w4889.pdf
N1  - Author contact info:
Mark Hooker
State Street Global Advisors
Advanced Research Center
E-Mail: Mark_Hooker@ssga.com

Michael M. Knetter
School of Business
University of Wisconsin, Madison
5110 Grainger Hall
975 University Avenue
Madison, WI  53706-1323
Tel: 608/262-1758
Fax: NA
E-Mail: mike.knetter@supportuw.org
M2  - featured in NBER digest on 1995-04-01
AB  - We use data on a panel of states over a 30 year sample to estimate the response of unemployment to military procurement spending.  The state panel provides greater variation in both variables and permits us to examine whether responses to procurement spending shocks vary across states.  Our main finding is that changes in procurement spending significantly affect unemployment in states heavily dependent on the military sector and subject to large such changes, and that accounting for this variation in responses across states adds approximately 40% to the estimated aggregate unemployment impact of the current drawdown.
ER  -