00% 0,50% 0,00% 1960 1962 1964 1966 1968 1970 1972 1974 1976 1978 19...

1,00%

0,50%

0,00%

1960

1962

1964

1966

1968

1970

1972

1974

1976

1978

1980

1982

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1988

1990

1992

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1996

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2012

 Figure 2: Dutch military spending to GDP ratio since 1960 (Source: CBS). 7Data and methodology Sample period The time span of my analysis is from the sixties until present day. The end of World War II practically marks a new era and during the first half of the fifties the Netherlands strengthened their defense system after the devastations of Nazi Germany. However, during the second half of the fifties the defense budget decreased dramatically. Since previous budgets were not completely spent and other funds were made available, these budgetary cuts are only relevant in accountancy terms. Because of the largely unique characteristics of the fifties when it comes to defense spending, this decade is excluded from my analysis. Dependent variable The variable of interest is military expenditure to GDP ratio as measured by the Dutch Agency for Statistics (CBS). In line with the NATO definition all costs incurred as a result of current military activities are included. The merit of military expenditures as measurement is debated in the academic literature. Some dispute whether measures of input are superior to measures of output (Looney et al,