PEACE SCIENCE DIGEST – One key argument against military spending is that it â€œcrowds outâ€ government spending in public health. The evidence is mixed. Some argue that increased military spending has indirect but positive effects on public health â€” whether through the diversity of military expenditures or other â€œgrowth-stimulatingâ€ 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.