Using global data for the period 1960-99, Collier and Hoeffler estimate neighborhood arms races. They find that the level of military expenditure is strongly influenced by the expenditure of neighbors. The authors estimate an quot;arms race multiplier,quot; finding that an initial exogenous...

An arms race exists when a country’s propensity to acquire arms is influenced by a potential adversary’s military spending. When evaluating the impact of economic policies towards the developing world, e.g., foreign assistance programs, it is important to identify if an arms race exist...

Defense economics derives from and is embedded in the multi-dimensional array of issues each country must address when providing for its national security. Applying economic concepts and methods, it attempts to evaluate this great diversity of security related questions, and to understand how...