Document Type

Article

Language

eng

Format of Original

5 p.

Publication Date

10-1990

Publisher

Southern Economic Association

Source Publication

Southern Economic Journal

Source ISSN

0038-4038

Original Item ID

doi: 10.2307/1060630

Abstract

The reason for the apparently opposing results in Brada and Graves' (1988) attempt to explain the reasons for the slowdown in USSR defense expenditures in the mid-1970s is that their analysis suffers from a serious serial correlation problem. The majority of the regressions display Durbin-Watson statistics that reject the null hypothesis of no autocorrelation. A reestimation of their results, after correcting for serial correlation, changes some of their major conclusions regarding the factors influencing Soviet defense spending. The corrected results indicate that no structural break occurred in the mid-1970s. These results suggest that there has been no change in Soviet military doctrine or in the Soviet leadership's preferences in the 1970s. In reply, Brada and Graves argue that the evidence for the existence of serially correlated disturbances is much more tenuous than Chowdhury suggests and that the evidence is more consistent with the existence of a structural break and no serial correlation of disturbances.

Comments

Published version. Southern Economic Journal, Vol. 57, No. 2 (October 1990): 533-537. DOI. © Southern Economic Association 1990. Used with permission.

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