Europe’s defense spending is undergoing a historic shift. With NATO members expected to reach 2% of GDP and discussions underway to increase targets to 5% by 2035, this paper examines the possible ...

First-year multiplier estimates tend to fall in a 0.85–1.4 range for a general fiscal shock, 0.6–1.2 for aggregate spending, and about -0.2 for revenue. Granular multipliers suggest initially larger ...