This paper analyses a general-equilibrium model of the complementarity between economic competition for the allegiance of subjects and military competition for the control of land. In our model economic competition between rival rulers for the allegiance of subjects results in their subjects,...

Two small countries facing a constant probability of war with each other import arms for consumption goods from the rest of the world. The defense good, produced by combining arms and army, is a public good. The reaction curve depicting the optimal supply of the defense good turns out to be...