The economics of disarmament is a new discipline. It involves analyses on the economic causes of the arms race, the definitions of disarmament and the economic determinants and military expenditure. Simultaneously, disarmament is considered as an obstacle to economic development, a peace...

The end of the Cold War has increased the relative importance of economic causes and consequences of arms transfers. Unfortunately, there is surprisingly little theoretical and empirical development of the economics of arms trade, making it a sub-field of defense economics ripe for foundational...

This chapter provides a survey of research on the defense industrial base (DIB) focusing on the advanced industrial capitalist economies. It starts by looking at the problems of definition and measurement and how these have been dealt with in practice. This is followed by an overview of the...

The USA and other countries spend a significant portion of their defense budgets on personnel. Effective management of military forces requires an understanding of the economics of military manpower. Over the past three decades economists have produced a substantial body of research about the...

Military expenditure in developing countries raises complex questions regarding growth, development, security and governance. This chapter provides an analytical survey of the effects and causes of defense spending in developing economies. Using stylized facts, theoretical models and empirical...

This chapter reviews the empirical research on the relation between defense spending and economic growth. A broad flavor of the approaches adopted by different scholars is provided through a list of selected studies on the topic since 1973 and an outline of the variations over Benoit's original...

Previous analyses of arms races and proliferation are integrated and extended, building from a treatment of the behavioral foundations of weapons acquisitions to a general theory of arms races, with implications for the role of negotiations, the balance of power, the timing of crises, and...

This chapter provides an overview of the main theoretical and empirical findings in the economics of military alliances. The pure public and joint product models are presented along with the empirical methods used to test them. Issues concerning burden sharing and strategic doctrine in the NATO...

This chapter provides an analytical survey of models explaining the level of military expenditure, emphasizing empirical econometric models based on optimizing behavior. After setting out the standard neo-classical model in which nation states are represented as rational agents maximizing a...

Military expenditure is difficult to define. Major issues are functional versus institutional approaches to defense, indirect and intangible costs and benefits and current versus comprehensive accounting. Authoritative institutions have adopted standard definitions but national governments are...