The fiscal role of conscription in the U.S. World War II effort

A-Tier
Journal: Journal of Monetary Economics
Year: 2008
Volume: 55
Issue: 6
Pages: 1094-1112

Score contribution per author:

4.022 = (α=2.01 / 1 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

An often overlooked role of conscription is as a method of lump sum taxation in times of war. Conscription of military personnel allows the fiscal authority to minimize wartime government expenditure, and hence, minimize tax distortions associated with war finance. This paper presents a simple dynamic general equilibrium model to articulate this view, and calibrates the model to the U.S. World War II experience. Analysis of the calibrated model indicates that the welfare value of conscription as a fiscal policy tool is quantitatively large: despite the fact that the American involvement lasted only four years, conscription is worth approximately 2% of annual aggregate consumption in perpetuity.

Technical Details

RePEc Handle
repec:eee:moneco:v:55:y:2008:i:6:p:1094-1112
Journal Field
Macro
Author Count
1
Added to Database
2026-01-29