A Comparative Economic Analysis of Personnel Operation and Maintenance Expenditures per Commissioned and Non-commissioned Officers: The Case of the Republic of Korea Army
Jae-Hyung Lee, PhD

Abstract
With annual data for 1986 to 2011 from the Republic of Korea (hereafter Korea), the regression results are consistent with the hypothesis that each of commissioned and non-commissioned officers makes a substantial contribution to economic growth in Korea. The ceteris paribus mean elasticity of real income per capita with respect to each of annual average real personnel operation and maintenance expenditures per commissioned officer, non-commissioned officer, and officer shows that a change in real income per capita as a proxy for economic growth is not sensitive toeach of annual average real personnel operation and maintenance expenditures per commissioned officer, non-commissioned officer, and officer. The mean elasticity for noncommissioned officer (0.210) is greater than that for commissioned officer (0.196). Therefore, the mean elasticities support the defense reform to recruit more non-commissioned officers.

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