PEACE SCIENCE DIGEST – One key argument against military spending is that it “crowds out” government spending in public health. The evidence is mixed. Some argue that increased military spending has indirect but positive effects on public health — whether through the diversity of military expenditures or other “growth-stimulating” effects. Others suggest that there is a trade-off between military and public health priorities because government spending is constrained by limited resources. Using sophisticated statistical techniques, this article examines whether a causal relationship exists between military spending and public health spending.